"Electronic currencies are good only if someone tries to hide or launder money," Jerome Powell told the House Finance Committee on Wednesday.
Many analysts, businessmen and officials around the world have repeatedly attacked e-currencies, considering it a means of speculation and quick profit, as well as illegal transactions.
E-currencies have recorded record gains in the past year, before recording sharp losses since the beginning of 2018.
Powell pointed out that monitoring electronic currencies is not the Federal Reserve's task, but rather a matter of consumer protection, in reference to the central bank's failure to regulate its dealings.
The Federal Reserve Chairman believes that electronic currencies can not be considered as a currency in the conventional sense, because currency terms should be a means of exchange and a store of value, which the encrypted currencies failed to achieve.
By 5:20 pm GMT, the value of electronic currencies combined amounted to 296.1 billion dollars, after exceeding 300 billion dollars earlier in the day.
In the meantime, the currency of "Bitquin" reduced its gains to rise by 7% to $ 7436 dollars, after touching $ 7500 during trading.
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