Crypto Boom: Fed Chair Powell Says CBDC And Stablecoins Can Coexist

There are various bullish moves that are taking place in the crypto space as the crypto market is struggling to recover following recent corrections in price.

It’s been just revealed that the Federal Reserve Chairman Jerome Powell appeared before lawmakers on Tuesday to defend his position as head of the central bank.

He also made sure to answer questions about what is next for monetary policy as inflation rages on.

As Blockworks notes, following a series of remarks about central bank digital currencies (CBDCs) and a Fed digital dollar, Powell announced during his confirmation hearing Tuesday that crypto industry members and lawmakers can expect a report on digital currencies in the coming weeks.

Powell first mentioned the report in July 2021 with an original release date set for September.

Senate Banking Committee top Republican Sen. Pat Toomey questioned whether a Fed digital dollar would be able to exist alongside a “well-regulated, privately issued stablecoin.”

Powell, who previously argued that a CBDC would render private stablecoins obsolete, assured Sen. Toomey that the two are not mutually exclusive, as the online publication mentioned above notes.

It’s also important to note the fact that Powell highlighted the fact that inflation is driven by prolonged supply chain pressures and a lagging labor market.

“There is a mismatch between demand and supply, we have very strong demand in areas where supply is constrained, particularly around goods, particularly around things like cars,” Powell said.

He continued and said the following:

“We think part of [the solution] will be the return of a greater supply.”

Once people will understand what all this means, the bull market will resume for sure.

Speaking of stablecoins and the mass crypto adoption, the other day, we were revealing that PayPal is reportedly planning to launch its own stablecoin. This move comes as a part of its strategy to take advantage of crypto adoption.

PayPal’s senior vice president and general manager of blockchain, crypto, and digital currencies, Jose Fernandez da Ponte, confirmed to Bloomberg that the company is considering having its own regulated stablecoin.