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

End of Crypto Crackdowns? Lawmaker Says ‘Regulation by Enforcement Is Over’

A top lawmaker says the US is shifting from “regulation by enforcement” to clear oversight, with new leadership poised to boost cryptocurrency and AI innovation A New Era for Crypto and AI

SUI Flashes Overbought Warning, Will A Price Correction Follow?

SUI has been on an impressive upward trajectory, but signs of potential exhaustion are beginning to emerge Key technical indicators now suggest the cryptocurrency has entered overbought territory,

Bitcoin’s Creator Dead? Novogratz Stirs Debate Over Satoshi Nakamoto’s Fate

In a December 5 appearance on CNBC’s “The Exchange,” Galaxy CEO and founder Mike Novogratz offered insights into Bitcoin’s meteoric rise while making a striking comment that has reignited

DeFi lending on Liquidium hits 4-month high as Bitcoin soars past $100K

DeFi lending on Bitcoin-based Liquidium reached a four-month high of 21 BTC on Dec 5, following the top asset climb to a new all-time high above $100,000 Onchain data reveals that loans against Runes

Store-of-Value Coins Steal the Spotlight in a Dynamic Month for Crypto

With the crypto economy cruising at $367 trillion, some sectors are shining brighter than others Over the last 30 days, store-of-value coins such as bitcoin (BTC), litecoin (LTC), XRP, bitcoin cash

Bitcoin ETFs Now Hold More BTC Than Satoshi, Experts Say

The funds have purchased 1,104,534 BTC since January, surpassing the 1,100,000 in Satoshi’s public addresses US Spot ETFs Surpass Satoshi in Bitcoin Held The spot bitcoin ETFs approved by the