Cryptocurrencies

Powell Says Private Coins Could Compete With Fed Digital Dollar

Jerome Powell during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, D.C., on Jan. 11.

Photographer: Brendan Smialowski/AFP
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There’s room for privately issued stablecoins to exist alongside a possible central bank digital currency, according to Federal Reserve Chair Jerome Powell.

The Fed plans to publish a reportBloomberg Terminal on digital currencies in the coming weeks, Powell said at a Senate Banking Committee hearing on Tuesday. The central bank hasn’t said whether it plans to launch its own digital dollar akin to efforts underway in other counties such as China. The Fed and other U.S. watchdogs have previously said stablecoins need more regulation and should be issued by banks.