US Fed chief fears cyber attack more than new financial crisis

Federal Reserve President Jerome Powell thinks a large-scale cyberattack poses a greater risk to the US economy than another crisis like the one in 2008.

The chance of a financial crisis, in which the government has to bail out banks is “very, very small,” said Jerome Powell, president of the Federal Reserve (Fed) in the US current affairs program 60 Minutes. The American umbrella organization of central banks fears a large-scale cyber attack much more. “The world is changing and risks are changing with it,” said Powell. He said the Fed’s concerns are shared by multiple governments and companies, especially in the financial sector. According to Powell, it is banks and the like that also invest the most to prevent hacks and other attacks.

The risk of a cyber attack extends beyond just a hack at banks. According to Powell, the Fed is considering several scenarios where banks are not a direct target, but are subject to a cyber attack. For example, a large payment service provider can be affected, causing the entire payment system to come to a standstill.

crypto dollar

In the interview, Powell also expressed his views on the possible creation of its own digital currency by the central bank, a type of crypto dollar. China already did that last month. The Fed is also working on that development, but is also investigating how that would work. “We feel it is our duty to fully understand. How would it work? What functions should it have?”

Bitcoin was once again worth more than $60,000 last weekend. This put the value back around the record level that the crypto coin hit in mid-March. After that, the price fell back to about 51,000 dollars and then slowly rises again. Investors have probably been more excited about bitcoin lately because Coinbase, the largest US digital currency trading platform, is going public soon.

Price of crypto coins

The price of crypto coins is also rising now that large companies are increasingly accepting them. Tesla, among others, and also payment companies such as Mastercard, Visa and PayPal embraced the digital currency. has enough information. Connoisseurs previously stated that the price of digital currencies would also receive a boost from US President Joe Biden’s strong corona support package. As a result, investors would again dare to step into more speculative investments such as bitcoins.

Analysts believe the value of bitcoin could rise much further. With its upcoming IPO, Coinbase hopes to capitalize on this optimism. has enough information. The company’s value is estimated at tens of billions of dollars. A decision on its own virtual currency by the central bank of America will only come if the Fed really understands the consequences of such a introduction. “The dollar is the world’s reserve currency and is so important,” Powell said. “We don’t have to be the first. We want to do it right.”