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

20 Million XRP Moved; Rally To $3 Imminent?

The post 20 Million XRP Moved; Rally To $3 Imminent appeared first on Coinpedia Fintech News In a recent development, the blockchain tracker Whale Alert reported that 20 million XRP tokens were

Michael Saylor Says Forget Stocks—Bitcoin Is the Real Long-Term Bet

The post Michael Saylor Says Forget Stocks—Bitcoin Is the Real Long-Term Bet appeared first on Coinpedia Fintech News Michael Saylor, the Executive Chairman of MicroStrategy, sees Bitcoin as the

XRP News: Ripple’s RLUSD Stablecoin Could Boost XRP Price Stability

The post XRP News: Ripple’s RLUSD Stablecoin Could Boost XRP Price Stability appeared first on Coinpedia Fintech News Ripple is expected to launch its stablecoin, RLUSD soon The launch is

Morocco Cracks Down on Crypto Crime: 5 Arrested in Phishing Scam

Moroccan authorities arrested five people suspected of running a cryptocurrency phishing scam Email Phishing Scam Moroccan authorities have arrested and detained five individuals suspected of

Bitcoin Rally To Continue If This Level Holds, Is $110,000 The Next Stop?

After surpassing its $100,000 milestone, Bitcoin (BTC) recorded its largest retrace in the past month before recovering Amid the flagship crypto’s performance, some analysts have suggested the

Bitcoin Slips Under $100,000 As OGs Wake Up To Take Profits

Bitcoin has plunged back under the $100,000 level during the past day as on-chain data shows the OG whales have been waking up Bitcoin OGs Have Transferred Massive Amounts Recently In a new post on