Powell says Bitcoin is a competitor for gold, not a dollar

Bitcoin has recently become known as an investment tool called “digital gold” to preserve the value of money; Powell says the same.

The head of the Federal Reserve (Fed), the central bank of the United States, described Bitcoin (BTC) as a rival to gold due to its ability to retain its value rather than being used as a currency.

“Just like gold, but virtual. People don’t use it as a form of payment or store of value. It is quite variable. “It is not a rival of the dollar, but actually a rival of gold,” he said.

Powell mentioned the New York Times DealBook Summit 2024 when he posted a video on YouTube.

He also noted that the growing crypto sector should find a suitable position in the traditional banking system that concerns it and should be secure and supervised.

While the central bank does not directly regulate crypto, Powell aims to ensure that people interested in these digital assets have consumer protections regardless of the crypto product they hold.

Powell also claimed that he “in no way” owns any cryptocurrency when asked by American journalist and author Andrew Ross Sorkin.

Powell on Trump’s administration

Donald Trump, who was re-elected President of the United States after defeating Kamala Harris, was known to have a heated relationship with Powell in 2016. Trump even threatened to fire Powell after he was sworn in, but the president refused. make a comment.

Trump, on the other hand, has a strong stance on the future of Bitcoin in the country. He even introduced the Bitcoin Strategic Reserve and claimed that it could be the solution to the debt crisis.

The Republican party supports this idea by introducing the BITCOIN Act to Congress by Senator Cynthia Lummis. Thousands of support came from financial companies and investors for this proposal.