Bitcoin is seen as a rival to gold by the US Fed
While acknowledging Bitcoin’s volatility, the Federal Reserve Chairman Powell stated it competes with gold and not the US dollar.
The Federal Reserve Chairman, Jerome Powell, has described Bitcoin as a competitor to gold, citing its role as a tool for preserving value rather than a mainstream currency. Referring to Bitcoin as ‘digital gold,’ Powell noted its volatility and clarified that it poses no threat to the dollar, instead competing with gold in its niche.
Powell expressed concerns about the crypto industry’s integration with traditional banking systems, stressing the need for adequate supervision and consumer protection. While the Federal Reserve does not directly regulate digital assets, Powell emphasised the importance of safeguarding investors across the growing crypto sector.
Despite Bitcoin’s growing prominence, Powell disclosed he does not personally hold any cryptocurrency. Meanwhile, Donald Trump’s administration has taken a bold stance on Bitcoin, proposing measures like the Bitcoin Strategic Reserve to address economic challenges. The Republican party continues to push for supportive legislation, such as the BITCOIN Act, aiming to cement Bitcoin’s place in the financial landscape.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.
