Fed chair Powell views Bitcoin as digital gold, not a dollar competitor

Share This Post

The Federal Reserve Chairman Jerome Powell dismissed the notion of Bitcoin as a replacement for the U.S. dollar, instead framing the leading crypto as a speculative asset comparable to gold.

Powell shared his insights during an appearance at The New York Times DealBook Summit in Manhattan, emphasizing Bitcoin’s volatility and limited use as a form of payment or store of value.

According to Powell:

“It’s just like gold, only it’s virtual… It’s very volatile, it’s not a competitor for the dollar, it’s really a competitor for gold. That’s how I think of it.”

Powell’s comments come amid heightened speculation about Bitcoin’s growing influence in global finance. Crypto recently achieved a market capitalization of $1.92 trillion, surpassing silver, valued at $1.75 trillion, to become the world’s eighth most valuable asset. However, it remains far behind gold, which holds an estimated market value of $18 trillion.

This is not the first time Powell has used this comparison to address Bitcoin. In 2021, the Fed chair said that crypto is not useful as a store of value due to its intrinsic volatility, with Bitcoin being “essentially a substitute for gold, rather than for the dollar.”

Under President Joe Biden’s administration, the Fed is accused of being pivotal in Operation Chokepoint 2.0, an alleged plan to hinder the progress of the US crypto industry.

In August, following a Fed mandate directed at crypto-friendly Customers Bank urging tighter risk management and compliance measures, Gemini co-founder Tyler Winklevoss stated that the initiative “is alive and well.”

DeFi as ally

Despite Powell’s conservative tone toward Bitcoin and crypto as an asset class, Fed Governor Christopher J. Waller recently praised DeFi as an ally.

At the Vienna Macroeconomics Workshop on Oct. 18, Waller argued that intermediaries are still fundamental for the financial markets. However, he acknowledged that DeFi applications presented technologies that offer efficiency to traditional financial instruments.

He recognized the benefits of distributed ledger technology (DLT), tokenization, and smart contracts, which can enhance the speed and accuracy of financial transactions.

Moreover, Waller recognized at The Clearing House Annual Conference 2024 on Nov. 12 that central bank digital currencies (CBDC) are not helpful for payments, questioning whether the payments system has a problem that CBDCs could solve.

The post Fed chair Powell views Bitcoin as digital gold, not a dollar competitor appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin Price Prediction: Analyst Releases Bullish End Of Year Forecast Despite Failure At $100,000

The Bitcoin price seems to be facing somewhat of a price failure since it crossed above the $100,000 price level In the few hours after crossing above this psychological threshold, the Bitcoin price

Dogecoin Price Could Hit Double Digits If It Follows 2 Sub-Cycle Surges From 2017

Crypto analyst Trader Tardigrade has predicted that the Dogecoin price could hit double digits if it repeats historical patterns from the 2017 bull run The analyst had previously predicted that

Dedollarization Is Not Our Objective: India Clarifies Currency Goals

ndia rejects de-dollarization narratives, with the Reserve Bank of India (RBI) prioritizing local currency trade agreements to shield its economy from dollar volatility and global uncertainties RBI

Bitcoin Price Prediction: BTC Dominance Drops, Altcoin Season Begins

The post Bitcoin Price Prediction: BTC Dominance Drops, Altcoin Season Begins appeared first on Coinpedia Fintech News Bitcoin is currently trading above the historic and crucial $100k level and is

XRP Price Prediction For December 8

The post XRP Price Prediction For December 8 appeared first on Coinpedia Fintech News Ripple’s XRP is up by more than six percent in the last 24 hours and is trading near the $260 levels XRP is

Elon Musk Laughs Off OpenAI CEO’s Tweet On Sacks’ Appointment – Here’s The Scoop

The rivalry between two respected tech giants continues, which is evident in a congratulatory post that might have reignited the rift between the two former allies in AI tech SpaceX CEO Elon Musk