(AmericanProsperity.com) – Digital assets, such as cryptocurrencies, have become increasingly popular among Americans. Currently, there are no government regulations on these resources. Like with anything, it was only a matter of time before the federal government was going to crack down. Jerome Powell, Chairman of the US Federal Reserve, says there’s a good chance there will soon be regulations on digital assets.
A Word From Powell
On March 23, during a Bank for International Settlements discussion on digital currencies, Powell made it clear that any digital assets not yet regulated through the government would likely find their way under a set of rules. The Federal Reserve Chair noted this was to keep the playing field fair and to protect consumers while retaining the trust of users.
He explained that new technology would make electronic payments cheaper and faster, but it would also pose risks to current financial institutions. Powell said the current framework for regulations wasn’t designed with digital assets in mind, and legislators would need to make changes to existing laws or create new regulations entirely. Powell didn’t detail the specific changes he had in mind.
What Are Digital Assets?
Much like physical assets, digital assets can be bought, transferred, or owned by individuals. Some examples of these assets are:
- Bitcoin, a popular cryptocurrency
- Non-fungible Token (NFT) certificates showing ownership of the original digital data
- Stablecoins, which are asset-backed by physical currency or gold
These holdings can also include stored intangible data such as videos, artwork, contracts, or other documents.
Ownership records are held on blockchains, electronic ledgers, or decentralized databases. These structures allow users to transfer their assets without the use of banks or other centralized parties, making transactions faster and simpler.
The Future of Digital Assets in the US
Change is coming. According to CoinTelegraph, everyone will benefit from a more mature digital marketplace that protects its users and values with honesty, predictability, and transparency. Most people will find it advantageous, as they’ll be better equipped to determine digital assets of value in comparison to those designed to increase someone else’s wealth.
CoinTelegraph explains that the mature market has begun developing over the past few years, becoming more sophisticated and expanding its influence, which has brought in a new audience. The financial media site believes the added investors will bring new confidence to the industry, prompting more interest in blockchain technology and helping to straighten out issues that have arisen.
The future of digital assets is still cloudy, but it appears that one day, the world may use these holdings to pay for everything from groceries to salaries. Consumers will just have to wait and see.
~Here’s to Your Prosperity!
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