Jerome Powell

Chair

Bitcoin

when

Reserve

United States Federal Reserve Chair Jerome Powell has reiterated his view that Bitcoin is a direct competitor to gold and isn’t a threat to the US dollar.
“People use Bitcoin as a speculative asset. It’s just like gold, only it’s virtual, it’s digital,” Powell <a data-ct-non-breakable="null" href="https://www.youtube.com/watch?v=-oLfaksWj4o" rel="noopener noreferrer nofollow" target="null" text="null" title="null">said</a> at The New York Times-hosted DealBook Summit in New York on Dec. 4.
<blockquote>
 “People are not using it as a form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar. It’s really a competitor for gold.”
</blockquote>
The Federal Reserve Chair has <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-is-more-a-substitute-for-gold-than-the-dollar-fed-chair-powell" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-is-more-a-substitute-for-gold-than-the-dollar-fed-chair-powell">made these comments</a> before, comparing Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) to gold during an event hosted by the Bank for International Settlements in March 2021 when Bitcoin was trading at just $58,200. Cryptocurrencies like Bitcoin are highly speculative, and “they’re not backed by anything,” Powell said at the time.
Since those comments, Bitcoin has soared 70% while gold has increased just 52%.
At the DealBook Summit, Powell also shot down the idea that people view Bitcoin as a symbol of people’s lack of faith in the Federal Reserve and the US dollar.
“I don’t think that’s how people think about it,” Powell asserted.
<blockquote class="twitter-tweet">
 🇺🇸 JEROME POWELL: "[<a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a>] is not a competitor for the dollar, it's a competitor for gold." <a href="https://t.co/VkZ0dIMUJ6" rel="noopener noreferrer nofollow">pic.twitter.com/VkZ0dIMUJ6</a>— Cointelegraph (@Cointelegraph) <a href="https://twitter.com/Cointelegraph/status/1864392832636850634?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 4, 2024</a>
</blockquote>
When New York Times journalist Andrew Ross Sorkin asked Powell whether he owned Bitcoin, he responded: “I’m not allowed to.”
Powell, however, said he is fine with crypto companies doing business with banks as long as they do not threaten their “health and well-being.”
Consumer protection was the other important factor Powell highlighted though he noted the Federal Reserve doesn’t directly regulate that area.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-nears-100k-defying-415-death-predictions" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Bitcoin was pronounced dead 415 times, now it battles for $100K</a>
It comes as Bitcoin rallied to $99,329 on Dec. 4 — within arm’s reach of breaching its all-time high and <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-range-consolidation-a-heathy-next-step-before-next-btc-attempt-at-100-k" rel="noopener noreferrer nofollow" target="null" text="null" title="null">surpassing the $100,000 milestone.</a>
Bitcoin’s price rally has, in part, been pushed by <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/trump-win-bitcoin-100k-crypto-regulation-influence" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Donald Trump’s presidential election win</a> in November.
Trump’s win has resulted in an overhaul of the US cabinet, with the President-Elect choosing&nbsp;hedge fund manager<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/trump-leading-treasury-secretary-pick-pro-crypto" rel="noopener noreferrer nofollow" target="null" text="null" title="null"> Scott Bessent</a> and Cantor Fitzgerald CEO<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/trump-commerce-secretary-howard-lutnick-crypto" rel="noopener noreferrer nofollow" target="null" text="null" title="null"> Howard Lutnik</a> to lead the Secretary of Treasury and Commerce departments, shaping up what could be the most pro-crypto cabinet to date.
Trump has <a data-ct-non-breakable="null" href="https://edition.cnn.com/2024/02/02/economy/trump-reappoint-fed-chair-jerome-powell/index.html" rel="noopener noreferrer nofollow" target="null" text="null" title="null">reportedly</a> been critical of Powell’s decision making but the Federal Reserve Chair has <a data-ct-non-breakable="null" href="https://www.youtube.com/watch?v=hpx44e-LBno" rel="noopener noreferrer nofollow" target="null" text="null" title="null">asserted</a> he won’t resign should Trump try to push him out.
Meanwhile, Trump selected crypto advocate <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/trump-nominates-paul-atkins-replace-gensler-sec-chair" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Paul Atkins to become the new chair</a> of the Securities and Exchange Commission after Gary Gensler announced <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/gary-gensler-resign-sec-crypto-scrutiny" rel="noopener noreferrer nofollow" target="null" text="null" title="null">he would resign</a> when Trump is inaugurated on Jan. 20.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/ethereum-is-poised-to-catch-up-with-bitcoin-and-solana-in-2025/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Comeback 2025: Is Ethereum poised to catch up with Bitcoin and Solana?</a>

Bitcoin is a competitor to gold, not the US dollar, reiterates Fed’s Powell

Cointelegraph

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