The future Chairman of the fed: «Today, crypto-currencies do not affect our work»

The candidate for President Donald trump on a post of the Chairman of the Federal reserve system, Jerome «Jay» Hayden Powell (Jerome «Jay» Hayden Powell), participated in the guaranteed by the Constitution of the approval procedure by the Senate in the hearing on 28 November 2017. In particular, at the meeting he expressed his position on the cryptocurrency.

«Bitcoin and cryptocurrencies is something that we closely watch,» said Powell in response to questions about current and future policy of the fed in relation to decentralized currencies.

Powell attended Tuesday’s hearing in the U.S. Senate that had to confirm his authority as head of the fed in the administration of President trump. The Senator from Georgia, David Alfred Perdue (David Alfred Perdue) asked Powell a number of issues, in particular he raised the topic of bitcoin. He said

«We have another bubble that is 4-5 times greater than the size of the bubble Internet companies in the late 1990-ies, and it is associated with cryptocurrencies such as bitcoin,» said he.

«The market value of bitcoin now worth more than all but 29 of the companies listed on the S&P 500 in America,» he continued. «Assuming that all and will continue at this pace, and if we talk about this bubble, as well as the size and growth of cryptocurrency… the extent to which it affects your ability to manage monetary policy of the country, as head of the Central Bank?»

Powell replied:

«In the long term cryptocurrency can have value. Today, however, they do not affect us. They have not yet reached this size, to influence our policy.»

Senator Perdue again drew a parallel between the boom of the Internet companies in the 90-ies and bitcoin, implying that Powell needs to understand the danger of such a bubble.

«From our point of view, a cryptocurrency is something that we carefully observe. We are also considering the technology of the blockchain as a tool, which can greatly affect the entire system of payments in our economy,» said Powell.

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