(Dinarian Note: This was sent in a Linqto email broadcast today, interesting word I have been hearing nonstop across the news and now out of Powells mouth himself... "RIPPLE".. Just Coincidence?)
Federal Reserve Chairman Jerome Powell spoke about DeFi and the Fed's Central Bank Digital Currency ("CBDC") program at a conference hosted by the Banque of France earlier this week.
Powell called for more regulation in DeFi suggesting that the monetary policy normalization worldwide has revealed "significant structural issues" in digital asset markets.
The Fed Chairman said, "within the DeFi ecosystem, there are these very significant transparency, lack of transparency issues."
Powell made reference to the crypto winter and pointed out that the interaction between DeFi and the traditional banking system was too small to have caused any negative 💥ripple💥 effect in the broader financial system. However, he suggested that it could be if regulatory guard 💥rails💥 are not put in place.
Furthermore, Powell was quick to acknowledge the quick adoption of DeFi, and appeared to suggest that any regulatory action would be preventative to protect consumers, saying "there is a real need for more appropriate regulation so that as DeFi expands and starts to touch more retail customers, more appropriate regulation is in place.”
Finally, he gave an update on the CBDC program, suggesting that it could take a couple of years before they conclude whether or not to implement one. He wants the Fed to investigate the implications of a CBDC, and whether or not it's something that should be pursued.