Crypto possess significant threat to U.S Dollar, Jerome Powell acknowledges

Jerome Powell, Federal Chairman, has accepted the potential threats triggered by the proliferation of digital currencies. He further revealed that the United States is working hard on the Digital Dollar considering the current situation and recent development of Libra, a proposed digital currency by Facebook.

Although the US has increased the pace on Digital Dollar, the Federal Reserve is not in rush to introduce it anytime soon. The government body is analyzing the impact and pros and cons of introducing its own digital currency, the chairman added.

Jerome Powell also emphasized the importance of maintaining the centrality of the national currency of the United States. He said the major world economies, as well as financial institutions, are exploring the aspects of digital currencies and working towards the digitalization of economies.

The United States has already raised concerns in the past over the increase of digital currency projects and the disruption it may cause to an economy. The congressman remarks solidify the stance of the US on cryptocurrency.

Jerome Powell statement fuels the Bitcoin price

Soon after the words of an important person in the US government regulating body surfaced on the internet, the Bitcoin price soared above $10K. The sudden spike in the price is assumed to be the result of the acknowledgment of the significance of blockchain by Fed Chairman. The BTC/USD price has seen a quick increase of 4% after this statement.

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