Stablecoins in the Hot Seat: Powell Calls Bitcoin a Substitute for Gold While Fed Says Digital Dollar Prototype Coming in July

Three major moments over the last couple days help provide insight into the future of the U.S. government’s relationship with bitcoin, stablecoins and digital currencies. 

The first was Federal Reserve Chair Jerome Powell’s comments on digital assets and a central bank digital currency, saying work on a U.S. “digital dollar” was not being motivated by bitcoin or any other crypto, and that bitcoin is just a gold substitute. 

The second was news out of the Boston Fed that it would be showing off two digital dollar prototypes in conjunction with MIT by July. 

The third was new draft Financial Action Task Force guidance around cryptocurrencies that CoinDesk warns are significantly more onerous than previous guidance. 

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