Lael Brainard: no compelling reason to issue US national cryptocurrency

One of the governors of the United States Federal Reserve has once again mentioned cryptocurrencies.

Holding a speech at San Francisco summit related to the topic, she noted that it would be baseless to start the development of the cryptocurrency directly backed by the United States government and its financial agencies.

Lael Brainard has also repeated the words of current Fed Chair Jerome Powell first said during his interview at the public hearings when he was still a nominee for this post. Cryptocurrencies do not pose any risks to the financial stability of America because of the vast market scale of the latter.

Curiously, the Fed Governor has also pointed out a possible scenario in which some digital currencies do not withstand the pressure of the regulatory authorities. This indicates that the market newcomers would be better off preparing for stress situations from the start.

Unlike some wealthy individuals of the private sector, the United States and Fed officials are usually calm about cryptocurrencies, while also not lacking the natural skepticism towards the new and anarchic economic trend. Lael Brainard has already spoken out on the issue and clearly didn’t change her view on this theme since then.

The full speech of Lael Brainard is conveniently available on the official site of the Fed.

Image courtesy of Evan Vucci / AP