Testifying before the Financial Services Committee of the US House of Representatives, Jerome Powell, president of the Fed, supported cryptocurrencies based on privacy such as Monero and Z-Cash.

Contrary to previous statements by the US authorities, Jerome Powell, president of the Federal Reserve of the United States, FED for its acronym in English, recognized yesterday the morning before the Committee of Financial Services of the House of Representatives, the need for transactions with cryptocurrencies based on privacy, which for some was the cause of a bullish feeling in social networks.

During his testimony at Capitol Hill, Powell testified about the state of the economy and monetary policy of the United States. Specifically, Powell spoke in support of private cryptocurrency transactions, such as those offered by privacy currencies such as Monero and Z-cash.

Powell’s conversation with the House of Representatives Financial Services Committee lasted almost 3 hours.

Jerome Powell and privacy-based cryptocurrencies

Powell’s comments contradict the Trump administration’s general hostility toward anonymous cryptocurrencies. As DiarioBitcoin reported, US Treasury Secretary Steven Mnuchin warned in July about cryptocurrencies operating in the shadows.

Powell stated:

“Cryptocurrencies such as Bitcoin have been exploited to support billions of dollars in illegal activities such as cybercrime, tax evasion, extortion, ransomware, illicit drugs and human trafficking”

After these comments, many had assumed that anonymous cryptocurrency transactions would soon see significant repression by the United States government, which is even more latent according to the White House’s recent proposal to go after crypto crimes (the last of the brief news). But, Powell’s comments may hint at a possible reorganization of the policy.

Bullish Feeling

For the founding partner of Morgan Creek Capital Management, Anthony Pompliano, the sentiment has turned bullish on social media after Powell’s testimony. “Pomp” said:

“BREAKING: Fed Chairman Jerome Powell just came out in favor of private transactions for digital currencies.

He specifically said “A ledger where you know everybody’s payments is not something that would be particularly attractive in the context of the US.”

Game on “

The head of the Fed spoke about a variety of crypto-related topics, including Facebook Pound and the implications that the digital currency of the social media giant could have on monetary policy. He also addressed the recent injections of liquidity in the Repo market and its volatility.

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