The United States Federal Reserve is exhibiting changes in its stance on cryptocurrencies, which could have significant implications for the integration of digital assets into the country's financial system.
Evolution of Cryptocurrencies' Perception
Recent speeches made by members of the US Federal Reserve showed a shift in their opinions about cryptocurrencies. FED Governors Michelle Bowman and Christopher Waller, who previously opposed cryptocurrencies, are now advocating for financial innovation. Bowman pointed out that regulation should promote innovation rather than stifle it. Waller emphasized that stablecoins pegged to the US dollar could strengthen America's financial dominance.
Complex Relationship with the Federal Reserve
The Federal Reserve was initially established without cryptocurrencies in mind. It was created in 1913 to stabilize the US economy. Over time, its priorities have evolved. With the appearance of Bitcoin and other cryptocurrencies by the mid-2010s, regulators had to respond to this new class of assets.
FED's Position on Bitcoin is Evolving
The change in attitude towards cryptocurrencies is evident in the remarks of FED Chair Jerome Powell. Although he previously claimed that cryptocurrencies do not threaten monetary policy, Powell became more open about managing digital assets by 2020. By 2024, he acknowledged Bitcoin as a speculative asset, comparing it to gold, and emphasized that banks could serve crypto customers as long as they can manage the risks involved.
The gradual shift in the Federal Reserve's attitude towards cryptocurrencies suggests that the integration of digital assets into the US financial system is becoming more feasible. These changes could lead to new political and economic transformations.
