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Federal Reserve Chairman Powell Worried About Unlicensed Blockchain

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According to reports, Federal Reserve Chairman Powell said that he was really worried about the unlicensed blockchain. This is not conducive to maintaining saf…

Federal Reserve Chairman Powell Worried About Unlicensed Blockchain

According to reports, Federal Reserve Chairman Powell said that he was really worried about the unlicensed blockchain. This is not conducive to maintaining safety and soundness. For the United States, it is important to have a legal framework around digital activities. Under proper supervision, stable currency has a place. That is a matter of Congress, not the responsibility of the Federal Reserve.

Powell: Under proper supervision, stable currency has a place

Analysis based on this information:


The Federal Reserve Chairman, Jerome Powell expressed his concerns regarding the unlicensed blockchain, stating that it was not conducive to maintaining safety and soundness. He highlighted the need for a legal framework around digital activities. While stable currency has a place under proper supervision, it is not the responsibility of the Federal Reserve to implement a legal framework. This is something which falls under the jurisdiction of Congress.

Blockchain technology has been gaining a lot of attention in recent years, especially in the financial sector. It is a decentralized ledger of transactions that can be shared across a network of computers. Blockchain has the potential to make transactions more secure and transparent, but unlicensed blockchain platforms can pose serious risks to the stability of the financial system. Such platforms could be vulnerable to cyber attacks and could facilitate illegal activities such as money laundering and terrorist financing.

Chairman Powell’s concern about unlicensed blockchain is therefore valid. The Federal Reserve has a mandate to maintain the stability of the financial system, and unlicensed blockchain could potentially upset this balance. For instance, if a major financial institution were to use an unlicensed blockchain platform to settle transactions, it could lead to widespread disruption in the financial markets in the event of a cyber attack.

Furthermore, the absence of a legal framework around digital activities can also expose consumers to financial risks. Without regulations in place, it becomes difficult for consumers to hold companies accountable for any fraudulent activities. This is why having a legal framework around digital activities is crucial in ensuring consumer protection and maintaining the stability of the financial system.

In conclusion, Chairman Powell’s remarks regarding unlicensed blockchain reflect the Federal Reserve’s commitment to maintaining the stability of the financial system. The adoption of blockchain technology should be done in a safe and sound manner, under proper supervision, and with a legal framework in place. While it is not the Federal Reserve’s responsibility to implement such a framework, it is important for Congress to take up this issue and address the potential risks associated with unlicensed blockchain.

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