OREANDA-NEWS. Cryptocurrencies do not pose a threat to financial stability, said Jerome Powell, head of the US Federal Reserve (Fed). However, they are unsecured and create risks for consumers, many of whom do not understand what they are buying, writes MarketWatch.

"I think they (cryptocurrencies) are risky because they are not backed by anything. And I think there is a significant consumer problem for those who may not understand what they are getting,"- Powell said.

At the same time, the Fed chief saw potential in stabelcoins. In Powell's opinion, they can become an element of the financial system, but only with proper regulation, which hasn't been made yet.

At the end of the two-day meeting of the US Federal Reserve on December 14-15, the base rate remained unchanged, at about zero (0-0.25%). At the same time, the US regulator decided to accelerate the winding down of the economic stimulus programme - it will reduce bond purchases in the market by $30bn per month instead of the planned $15bn. At this rate, the programme will be fully completed by mid-March 2022.

Earlier Bank of Russia Governor Elvira Nabiullina reiterated her extremely negative attitude to private cryptocurrencies. According to Nabiullina, the problem with digital currencies is their anonymity and the fact that no one is responsible for them. She also said that a "responsible state" should not encourage the spread of cryptocurrencies.