Federal Reserve Chairman Jerome Powell has dismissed the idea that Bitcoin could replace the U.S. dollar, likening the cryptocurrency to gold as a speculative asset rather than a store of value.<\/p>\n
Powell shared these views during his appearance at The New York Times DealBook Summit in Manhattan.<\/p>\n
When asked whether Bitcoin\u2019s popularity reflects a lack of faith in the U.S. dollar or the Federal Reserve, Powell said<\/a>, \u201cI don\u2019t think that\u2019s how people think about it.\u201d He went on to describe Bitcoin as a highly volatile asset used for speculation rather than as a stable store of value.<\/p>\n \u201cIt\u2019s just like gold, only it\u2019s virtual,\u201d Powell said. \u201cIt\u2019s very volatile, it\u2019s not a competitor for the dollar, it\u2019s really a competitor for gold.\u201d<\/p>\n These remarks come at a time of heightened speculation about Bitcoin\u2019s role in global finance. It has seen a significant price rise in recent weeks, driving its market capitalization to over $2 trillion.<\/p>\n According to CompaniesMarketCap.com, the cryptocurrency is now the seventh-largest asset globally. Bitcoin ranks<\/a> behind gold, which has an estimated market value of $18 trillion, and five major American companies, including Nvidia, Alphabet, and Meta.<\/p>\n Powell\u2019s conservative stance on Bitcoin and other cryptocurrencies is consistent with his previous statements. In 2021, he similarly criticized Bitcoin for its volatility, arguing that it failed to serve as a reliable store of value or medium of exchange.<\/p>\n At the time, he referred<\/a> to all cryptocurrencies as speculative investments that would not replace the dollar but could rival gold as an alternative asset.<\/p>\n Following the 71-year-old\u2019s reappointment as Federal Reserve Chair in 2021, Galaxy Digital CEO Mike Novogratz expressed<\/a> concerns, stating that his leadership would likely hinder market growth.<\/p>\n \u201cPeople are getting pretty bearish on crypto,\u201d Novogratz said at the time.<\/p>\n Under Biden\u2019s administration, the Federal Reserve has been accused of playing a key role in \u201cOperation Chokepoint 2.0,\u201d an alleged effort to stop the growth of the U.S. cryptocurrency industry by cutting crypto firms\u2019 access to traditional banking services.<\/p>\n In August 2024, these allegations were reignited after the Fed directed Customers Bank, a crypto-friendly institution, to tighten its risk management and compliance measures. This prompted Gemini co-founder Tyler Winklevoss to declare<\/a> that Operation Chokepoint 2.0 \u201cis alive and well.\u201d<\/p>\n Crypto\u2019s banking issues began years ago, intensifying after the collapse of FTX, which triggered stricter regulations against blockchain companies.<\/p>\n This included mandates from the OCC, FDIC, and Federal Reserve that discouraged banks from serving crypto firms. As a result of this, many crypto-friendly banks like Silvergate Bank, Signature Bank, and Silicon Valley Bank have since been forced to close.<\/p>\n The post Fed Chair Likens Bitcoin to Gold, Says It\u2019s Not a Rival to the Dollar<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Federal Reserve Chairman Jerome Powell has dismissed the idea that Bitcoin could replace the U.S. dollar, likening the cryptocurrency to gold as a speculative asset rather than a store of value. Powell shared these views during his appearance at The New York Times DealBook Summit in Manhattan. Powell\u2019s Argument When asked whether Bitcoin\u2019s popularity reflects […]<\/p>\n","protected":false},"author":0,"featured_media":26111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-26110","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/26110"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26110"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/26110\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/26111"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Concerns Under Powell\u2019s Leadership<\/h2>\n