Powell Compares Bitcoin to Gold

U.S. Federal Reserve Chair Jerome Powell compared bitcoin to gold as its value approaches $100,000.

"People use bitcoin as a speculative asset, right? It's like gold," Powell stated during The New York Times' DealBook Summit. He characterized bitcoin as a digital version of gold and noted its volatility.

Powell emphasized that bitcoin is not a competitor to the dollar but rather to gold. In June 2023, he mentioned that bitcoin has "staying power." As of now, bitcoin's price is approximately $97,400.

In the context of the upcoming presidential election, President-elect Donald Trump has expressed support for the crypto industry and appointed Paul Atkins, a pro-crypto former regulator, to chair the U.S. Securities and Exchange Commission.

During the summit, Powell discussed the need for the interaction between crypto and banks to safeguard bank health. He clarified that the Federal Reserve does not directly regulate cryptocurrencies.

When asked if he would ever own crypto himself, Powell replied, "I'm not allowed to." He also addressed Trump's past criticism regarding inflation, asserting that he will not resign at Trump's request due to legal protections for the Federal Reserve's independence.