Federal Reserve Chairman Jerome Powell stated that there has been a strong argument in the US digital dollar favour. It basically is the CBCD’s ability for undermining the stable coins and cryptocurrencies. On July 14, the announcement of undermining the stablecoin came right after the European Central Bank came up with the plan for looking in the development of a digital euro. 

As per the Federal Reserve Chairman Jerome Powell who appeared before the House financial services committee came up with a huge statement after clarifying on the two-dated mandated monetary policy update.  

There were many questions that were raising on him with regards to the increasing inflation or when the bond purchase tampering shall begin and the regulations surrounding the central bank digital currencies and cryptocurrencies. 

While being on the discussions, parallelly the European Central Bank got elected to move ahead with the research and creating a digital Euro which indicated the interest in exploring the benefits of CBDC to the American financial system.  

It was then the Powell made a statement “You wouldn’t need stable coins, you wouldn’t need cryptocurrencies if you had a digital US currency,”. Further the president of ProcChain Capital David Tawil added “I believe there’s absolutely no validity to the opinion that other cryptocurrencies is irrelevant.” 

The enthusiast of crypto have already long questioned the role that a digital US dollar shall be playing in the board landscape of the blockchain. People have even made an argument that CBDC shall be functioning well enough but not differently as compared to the physical fiat currency. 

Before this statement that Powell made, he had even spoke on the Fed releasing the discussion paper.