Fed Chair Contemplates If US CBDC Will Drive Bitcoin To Zero

How Will US CBDC Impact Crypto? Fed Chair Ponders

U.S. Congressman Stephen Lynch asked Fed chair Jerome Powell if US CBDC would wipe out cryptocurrencies.

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"Will cryptocurrencies go to zero when we come up with a CBDC that has the full faith and credit of the US behind it?” Lynch asked.

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Powell countered why any crypto that isn’t “drawing on the credibility of the dollar” like Bitcoin or Ethereum has any value at all, regardless of a CBDC’s release.

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Federal Reserve chairman refrained from commenting on how they could possibly be impacted by a CBDC as a result.

Adding, Powell said that he never understood how these cryptocurrencies have any value.

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Fed chairman highlighted how these cryptocurrencies don’t have any intrinsic value and yet trade for a positive number.

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Powell described the development of a CBDC as being in an early, experimental phase, adding the technology will take years to evaluate.

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