Powell Says Cryptocurrencies Aren't a Threat Yet

The video discusses the current state of cryptocurrencies, emphasizing that they do not yet pose a significant threat to financial stability due to their size. However, they are associated with illicit activities like money laundering and present significant risks to unsophisticated investors. The Federal Reserve is not considering a digital currency at this time. Cryptocurrencies are not widely used for payments and lack stability as a store of value due to their volatility.

What is the current stance on cryptocurrencies as a threat to financial stability?

• They have already destabilized the financial system.

• They are not yet significant enough to pose a threat.

• They are completely safe.

• They are a major threat.

What are some of the risks associated with cryptocurrencies?

• They are a stable investment.

• They can be used for illegal activities.

• They are backed by the government.

• They have intrinsic value.

Why might unsophisticated investors be at risk with cryptocurrencies?

• They are a stable currency.

• They have government backing.

• They are not aware of the lack of intrinsic value.

• They are guaranteed to make profits.

What is the Federal Reserve's current position on creating a digital currency?

• They have already launched one.

• They are against all digital currencies.

• They are not considering it.

• They are actively developing one.

Why are cryptocurrencies not widely used as a means of payment?

• They are too stable.

• They are widely accepted.

• They are volatile and not reliable.

• They are backed by gold.