Federal Reserve Bank Stands Prepared to Study ‘Collapse of the Bitcoin Market’
When the Federal Reserve conducts stress tests to measure risk in the U.S. financial markets, it may study "Extraordinary" events like a "Collapse in the Bitcoin market."
The U.S. central bank has recognized Bitcoin as potentially being a "Salient risk" to the market at-large.
According to a new policy rule for the Federal Reserve, studying historical patterns is not enough to figure out where the next market panic might break out.
Instead, the central bank is heeding recommendations to "Consider extraordinary shocks, such as a war with North Korea, the collapse of the Bitcoin market, or major losses caused by trader misconduct."
The commenter recommended that the Board consider extraordinary shocks, such as a war with North Korea, the collapse of the Bitcoin market, or major losses caused by trader misconduct, in its scenarios.
Once the Fed starts to monitor Bitcoin, it's really not that far of a jump for the U.S. central bank to get involved in that market.
Congress ultimately has the power to issue currency and not the Fed, because Congress wrote the Fed into existence at the request of the J.P. Morgan and other industrial barons with the Federal Reserve Act of 1913.Source: https://www.ccn.com/federal-reserve-bank-prepared-to-study-collapse-of-the-bitcoin-market