It is possible for private cryptocurrencies, including stablecoins, to coexist with a digital currency issued by the central bank, according to Federal Reserve Chair Jerome Powell on Tuesday.
He was replying to a question made by Sen. Pat Toomey during a confirmation hearing for a second term as the central bank’s president and chief executive officer in Philadelphia.
Powell’s words seemed to signal a change in tone from his remarks in July, when he said that if the central bank issued its own CBDC, there would be no need for cryptocurrency.
Stablecoins, for example, are a sort of cryptocurrency that is tied to an asset such as a fiat currency or a precious metal, among other things.
Because of a lack of understanding on how to manage this quickly expanding trillion-dollar industry, people in the US Capitol, Wall Street, and the crypto world have come into conflict with one another.
Powell also stated on Tuesday that the central bank intends to publish its long-awaited study on digital currencies in the coming weeks, which has been widely anticipated.
All major cryptocurrencies were winners in 2021, beating the S&P 500, which gained 27 percent over the same year.
Solana and Avalanche are two very distinct cryptocurrencies, but they have one important characteristic in common: they both promote creativity.
The proof-of-stake cryptocurrency gained traction in 2021 when it emerged as a popular alternative to Ethereum during the New Financial Technologies (NFT) boom.
Solana saw a strong bull run last year, with its value increasing by about 10,000 percent by 2021. Decentralized apps (dApp) initiatives that need a solid blockchain platform may benefit from the platform’s benefits in terms of speed and transaction capacity, which can assist maintain the momentum of the blockchain network.
As a consequence of demonstrations in the country’s southern region over a surge in gasoline prices last week, police violence, the resignation of former president Nursultan Nazarbayev from his position as chairman of the security council, and an internet blackout were all experienced.
In addition to the volatility in cryptocurrency pricing, which has been ascribed to the Federal Reserve’s hawkish policies, it seems that internet shutdowns are exerting pressure on crypto mining stocks.
According to Alan Dorjiyev of the Kazakhstan National Association of Blockchain and Data Center Industry, which represents 80 percent of the country’s legal mining enterprises, the majority of cryptocurrency manufacturers have now returned to the market.
Because of the ongoing problems with blackouts and power outages, the government declared in October 2021 that it would begin restricting power supply to registered miners and disconnect them if the grid became overloaded at any point.