Federal Reserve Chair Jerome Powell has reiterated that Bitcoin is a competitor to gold rather than the US dollar, emphasizing its speculative nature and volatility. Speaking at the DealBook Summit in New York on Dec. 4, Powell stated, “People use Bitcoin as a speculative asset. It’s just like gold, only it’s virtual, it’s digital. It’s not a competitor for the dollar.”
Powell dismissed the notion that Bitcoin reflects a lack of faith in the Federal Reserve or the dollar, adding, “I don’t think that’s how people think about it.” He also noted that cryptocurrencies like Bitcoin are not backed by anything, highlighting their speculative risk.
These comments echo Powell’s earlier statements in 2021, when Bitcoin traded at $58,200. Since then, Bitcoin has surged 70%, outperforming gold’s 52% gain during the same period.
When asked if he owns Bitcoin, Powell replied, “I’m not allowed to.” He expressed openness to banks working with crypto companies, provided it doesn’t threaten their stability, and stressed the importance of consumer protection, though the Federal Reserve doesn’t regulate that area directly.
Bitcoin’s current rally, nearing $100,000, has been attributed to Donald Trump’s presidential election win and pro-crypto cabinet appointments. Trump has nominated Paul Atkins, a crypto advocate, to replace SEC Chair Gary Gensler, signaling potential regulatory shifts under the new administration.
Source: Cointelegraph
