Since the conception, and the subsequent popularity of virtual assets, central banks and cryptocurrencies have had a long history of trying to diminish each other’s importance in the financial market.
With such a history in the rear-view mirror , a lot of crypto-enthusiasts and proponents were surprised to hear the recent remarks made by Jerome Powell regarding Bitcoin.
In a recent testimony before the Senate Banking Committee on Facebook’s cryptocurrency Libra, Jerome Powell, Chairman of the Federal Reserve, raised a lot of concerns with regard to the social media giant’s proposed cryptocurrency. However, he made news after he suggested that Bitcoin might have a place in the world, stating that he visualized, “a return to an era where multiple currencies are used in the United States.”
During the testimony, Powell was queried by the Board about whether the introduction of a cryptocurrency system would jeopardize the need for a reserve fiat currency.