Cryptocurrency Conversations on Capitol Hill

Cryptocurrency was all the buzz on Capitol Hill on Thursday.

The House Financial Services Committee met to discuss "The Future of Digital Currency." The primary goal of the session, according to the memorandum released last week, was to explore the merits of the U.S. government considering cryptocurrency and to discuss possible implementation at central banks.

Professors from UCSB acknowledged the dwindling usefulness of paper money and the rapid change towards a digital economy and concluded,.

The professors stopped short of endorsing a "FedCoin" citing concerns about the viability and security of digital currencies.

In a post-hearing press release, committee members expressed a willingness to continue exploring the potential use cases for digital currencies, but they cautioned that "The pros and cons of which need to be examined further."

In his remarks, Mr. Powell was clear that the Federal Reserve is not considering its own digital currency at this time.

In a separate session, lawmakers heard from experts on cryptocurrency and digital assets as they strive to determine an effective regulatory action for digital currencies.

In his opening statement, Mr. Conway was supportive of digital currencies.

"Digital assets like Bitcoin and Ether, but also like hundreds of other token-based projects that are being developed, represent a new way for people to interact and engage in commerce with one another. While digital assets are often thought of as 'payment systems' or 'digital gold' I believe the promise that token networks hold is more universal - and more exciting - than that."

Throughout the hearing, not all lawmakers were supportive of digital currencies.