Governor of the Federal Reserve assures that the US does not need to issue its own cryptocurrency yet

Lael Brainard, a member of the Board of Governors who presides over the Federal Reserve of the United States, affirms that the entity is not in immediate need to add cryptoactives.

During the Decoding Digital Currency conference held in San Francisco, Lael Brainard, a member of the Board of Governors who chairs the US Federal Reserve, said that, after meticulous analysis, the institution has concluded that it is not sensible to address the series of challenges that cryptocurrencies bring. In the words of Brainard:

There is no compelling need for the use of a digital currency issued by the government. "

However, the representative of the US central bank made it clear that this does not mean that cryptocurrencies represent a threat to overall financial stability, as the organization is monitoring the progress of such assets in areas such as payment policy, supervision and regulation, financial stability, monetary policy and more.

According to Brainard:

The small scale of cryptoactives, in relation to our financial system and its connections, suggests that at present this system does not represent a threat to financial stability. "

The governor went on to explain that adverse events could lead to extreme fluctuations in prices and other trade difficulties, and that to prevent such circumstances, the Federal Reserve will continue to monitor cryptoactives as they evolve, in order to detect any signs of growing concern for the financial system in general.

It should be noted that this is not the first time that the governor talks about cryptocurrencies. And last April, Brainard warned individual investors to be aware of the possible risks of these investments and the potential for losses, as a result of the high volatility they could present.