Bitcoin returns to $ 10,000 after Fed chairman Powell acknowledges digital currency is being developed

  • Bitcoin returned to $ 10,000 on Tuesday after Federal Reserve Chairman Jerome Powell acknowledged the importance of this central bank's blockchain development.
  • Jerome Powell emphasized that the price of Bitcoin rose on Tuesday after the Federal Reserve invested heavily in digital currency development.
  • Powell further acknowledged that cryptocurrencies can be a systemic risk for the US dollar.
  • China ’s Belt and Road Initiative is expected to launch digital currencies soon, and the Federal Reserve has made it clear that the United States is doing its best to keep up with the times.

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On Tuesday, in an otherwise bleak congressional testimony, Fed Chairman Jerome Powell's remarks brought bitcoin attention as BTC / USD prices surged 4% to $ 10,200.

US Congressman Bill Foster raised concerns about the need to keep pace with Chinese digital currency ambitions, and Powell said the cryptocurrency market is trending upward after "many projects" are underway.

Bitcoin surges after Powell acknowledges Fed is working hard to develop cryptocurrency

It is well documented that China has ambitious ambitions in the digital currency field. Mr Foster's concerns about China's digital currency have focused on the risks posed by the US dollar's status as a global reserve currency.

Bitcoin investors see this as a positive development, as Ball acknowledged that the Federal Reserve will be “vigilant” about blockchain development, and as a result, the price of Bitcoin / USD has skyrocketed.

Despite the impressive response from the cryptocurrency market, the Fed Chairman remains vigilant about the implementation of digital dollars due to privacy concerns:

The idea of ​​using a ledger to record everyone's payments is not particularly appealing in the United States; this is not a problem in China.

Fed Chairman: USD may face systemic risks posed by digital currencies

Nonetheless, Powell was well aware that Facebook's theoretical implementation of Libra changed the rules of the game, and his agency now understands the importance of "making rapid progress in this area."

Obviously, in this case, why Bitcoin has rebounded so aggressively, because the most powerful person in the financial world acknowledges the speed and scale of the digital currency's damage to the dollar. This is a positive change in the Fed's historical perspective on this issue.

China's Belt and Road initiative is expected to take advantage of cryptocurrencies

Another positive aspect is a strong reminder that cryptocurrencies will become the mainstream technology of the world's second largest economy. China plans to use blockchain in its Belt and Road Initiative.

Powell has been open to Bitcoin in the past and even acknowledged that it is a value store like gold. Today, he further demonstrates the Federal Reserve's high level of talent investment in cryptocurrencies.

Bitcoin will benefit from better institutional understanding

For the world's largest central bank, people have a better understanding of blockchain technology, which may be good news for Bitcoin.

Bitcoin has been in a huge uptrend since last December, and this week seems to have firmly regained the $ 10,000 level. With the upcoming spring halving, things look more and more stable, especially after Powell commented today.