There’s big news in the crypto world…
The plain-vanilla, never-speak-candidly head of the Fed just said something that shows he may have at least a kernel of self-awareness in his head.
He said stablecoins need regulation.
Of course he did. To a government wonk, even regulations need regulations.
But what he said is actually good news. Once we peel away the travesty of bureaucracy… and toss aside the grave opportunity cost that walks hand in hand with new rules and fresh laws… we see Jerome Powell is onto something.
He says stablecoins need regulation… because they could soon be a big part of the global financial system.
A Takeover Attempt
In his words…
“[The strong regulatory framework we see with banks and money market funds] doesn’t exist for stablecoins. And if they’re going to be a significant part of the payments universe – which we don’t think crypto assets will be, but stablecoins might be – then we need an appropriate regulatory framework, which frankly we don’t have.”
For crypto fans… it’s progress. A big leap forward.
Stablecoins – digital money that moves in tandem with a sovereign currency – are already a huge part of the monetary world. They’re used every day to buy and sell all sorts of things. They’re the currency used to facilitate most crypto transactions.
The Fed, of course, worries that they could get so big that trouble could brew if an adult doesn’t step in and regulate things.
It’s funny. And scary.
[Alert: Get in Position Now for the Beginning of the Next 1,000% Crypto Superboom]
The same group that’s created massive boom-and-bust cycles… sent huge ripples through everything from the labor market to the supply chain… and made such a mess that it now uses fake money to buy real debt… wants to regulate the free market solution to the problem it’s created.
Silly, right?
Well… it’s all silly these days.
But that’s not our point today. No. Our point is that things are starting to change.
Crypto is gaining its footing.
Deep Value
For proof, we step outside of the fool’s world in D.C. and into the real world. That’s where entrepreneurs and folks who actually make real money are doing some interesting things with crypto.
Take Jack Dorsey, a hero in the crypto world.
While the Fed figures out how to update its 40-year-old payment processing system, Dorsey and his company Square (NYSE: SQ) are already moving on to their latest iteration. Just last week, Dorsey announced the huge payment processor is starting a new business unit… aimed strictly at Bitcoin and decentralized finance.
The news disproves the idea at the heart of Powell’s statement above… the part where he says crypto assets won’t play a role in the real economy.
The Fed chief’s thought, in other words, was outdated just hours after he uttered it.
“Bitcoin changes absolutely everything,” Dorsey said. “I don’t think there is anything more important in my lifetime to work on.”
That’s the thing with crypto these days.
[Discover: The Top Cryptocurrencies to Buy, and When to Buy them, for Maximum Crypto Profits]
We’ve now stepped away from the theoretical and into the practical.
Stablecoins are becoming a real part of the economy. They’re moving money, facilitating trade and even generating income.
Better yet, many cryptos are no longer just an idea and some computer code. They’re actually doing something with real, fundamental value.
It’s in this realm where the magic will happen… coins with true – and deep – real-world value.
Powell says he doesn’t see it.
But we don’t think even he can be that ignorant.
The world of money is changing… and he’s merely trying to hold on.
Be well,
Andy
[Bonus: Why demand for cryptos is exploding – plus 8 cryptos you must avoid like the plague]
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