Bitcoin has recently become known as an investment instrument called “digital gold” to preserve the value of money; Powell says the same thing.
The Chairman of the Federal Reserve (Fed), the central bank of the United States, has publicly called Bitcoin (BTC) a competitor to gold due to the aspect of preserving the value of money rather than of its use as currency.
“It’s like a gold medal, except it’s virtual. People don’t use it as a means of payment or a store of value. It’s very volatile. It’s not a competitor for the dollar, it’s really a competitor for gold.
Powell mentioned the video posted on YouTube by the New York Times DealBook Summit 2024.
He also noted that the growing crypto industry should find a suitable position within the conventional banking system, which is his concern, and that it must be safe and supervised.
Although the central bank does not directly regulate crypto, Powell aims to ensure that those involved in these digital assets benefit from consumer protections, regardless of which crypto product they hold.
Powell also claimed that he held “no crypto at all”, after being questioned on this occasion by American journalist and author Andrew Ross Sorkin.
Powell on the Trump administration
Donald Trump, who was re-elected president of the United States after defeating Kamala Harris, was known to have had a strained relationship with Powell at the time in 2016. Trump even threatened to fire Powell once he was sworn in , but the president refused. comment.
Trump, for his part, has a firm stance on the future of Bitcoin in the country. He even introduced the Bitcoin strategic reserve and claimed that it could be a solution to the debt crisis.
The Republican Party supported the idea by introducing the BITCOIN Act to Congress by Senator Cynthia Lummis. This proposal also received thousands of supports from financial companies and investors.
