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Fed Chair: Crypto Has No Intrinsic Value, Not a Store of Value, Great for Money Laundering


The Federal Reserve's new chairman made his stance on cryptocurrency clear to the US House of Representatives on Wednesday. In his view, cryptocurrencies have no intrinsic value, are not used often as a means of payment, are not a store of value, but are great for money laundering. He also dismisses the idea that cryptocurrencies could pose a significant risk to the country's financial stability at their current size.

Powell's Testimony

The chairman of the U.S. Federal Reserve who took office in February, Jerome Powell, answered questions about cryptocurrencies in his testimony before the House Financial Services Committee on Wednesday.

Fed Chair: Crypto Has No Intrinsic Value, Not a Store of Value, Great for Money Laundering

Jerome Powell.

This committee has jurisdiction over issues pertaining to the U.S. economy, banking system, housing, insurance, securities, exchanges, monetary policy, international finance, international monetary organizations, and efforts to combat terrorist financing.

U.S. Representative and vice-chairman of the committee, Patrick T. Mchenry, asked Powell to outline his thinking on cryptocurrencies. The chairman replied that there are "significant" risks to "relatively unsophisticated investors" who "see the asset going up in price and they think this is great; I'll buy this [but] in fact there is no promise behind that." He elaborated:

Cryptocurrencies are great if you're trying to hide money or if you're trying to launder money…it doesn't really have any intrinsic value so I think there're investor or consumer protection issues as well.

1 Comments in Response to

Comment by Ed Price
Entered on:

People in the Fed would say this. Why? Because the whole fiat money system worldwide is a Ponzi. When people want to trade money for other things, what they want to trade is value. They don't really care what means is used. They simple want to trade value for value. The fiat money system is a method to steal value from people who use fiat to do the trading. Fiat is all the things that the Fed Chair says crypto is. - It's like two people facing off in a battle. One has a gun, the other has no weapons. Fiat is the gun that the Fed has. People have no weapons even though they use fiat. Crypto is like giving the people a gun.

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