The Chairman of the U.S. Federal Reserve (Fed), Jerome Powell, described Bitcoin as a speculative asset that serves a role similar to gold. Powell made these remarks on November 4 during the DealBook Summit.
“People use Bitcoin as a speculative asset, right? It’s like gold, except it’s virtual and digital,” Powell noted.
He added that Bitcoin is not commonly used for payments or as a means of saving due to its high volatility:
“It’s not a competitor to the dollar. In my view, it’s actually a competitor to gold.”
During the summit, Powell also stated that the Federal Reserve would prefer that interactions between banks and crypto-related businesses do not pose risks to financial institutions.
When asked if he personally holds any cryptocurrencies, Powell responded negatively, citing official restrictions tied to his position.
The Federal Reserve does not have direct authority over the cryptocurrency industry. Instead, the market is primarily influenced by the Fed's decisions on the benchmark interest rate for short-term interbank loans.
Background on Bitcoin’s Recent Price Movement
On November 15, Bitcoin's price fell to $87,000 following Powell’s comments about the impracticality of easing monetary policy.
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