Bitcoin has recently become known as an investment instrument that is called “digital gold” to preserve the value of money; Powell says the same.
The chairman of the Federal Reserve (The Fed), the central bank of the United States, has publicly called Bitcoin (BTC) a competitor for gold due to the aspect of preserving the value of money rather than using it as a currency.
“It’s just like a gold only it’s virtual. People are not using it as form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold,”
Powell mentioned on The New York Times DealBook Summit 2024 posted video on YouTube.
He also noted that the growing crypto industry should find a position that is suitable for the conventional banking system, which is his concern, and that it must be safe and supervised.
Although the central bank does not regulate crypto directly, Powell aims for the people who are involved in these digital assets to have consumer protections, no matter what the crypto-product they hold.
Powell also claimed that he does “not at all” hold any crypto, after being asked by the American journalist and author on that occasion, Andrew Ross Sorkin.
Powell on Trump’s administration
Donald Trump, who was re-elected as the President of the United States after defeating Kamala Harris, was known for having a heated relationship with Powell back then in 2016. Trump even threatened to fire Powell once he took an oath, but the chairman refused to comment.
Trump, on the other side, has a strong stance on Bitcoin’s future in the country. He has even introduced the Bitcoin Strategic Reserve and claimed it could be a solution to the debt crisis.
The Republican party support the idea by introducing the BITCOIN Act to Congress by Senator Cynthia Lummis. This proposal also received thousands of support from financial firms and investors.
