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Author: Admin | 2025-04-28
Key NotesFederal Reserve Chair Jerome Powell sees Bitcoin as "digital gold," emphasizing its speculative nature over practical currency use.Powell highlighted Bitcoin’s volatility, denying it competes with the dollar, despite its growing institutional narrative.The CME FedWatch Tool predicts a 75% chance of a December rate cut to 4.25%-4.5%. Federal Reserve Chair Jerome Powell, speaking candidly at the New York Times DealBook Summit on Wednesday, shifted the narrative surrounding Bitcoin. Far from labeling it a competitor to the US dollar, Powell positioned the cryptocurrency as a digital rival to gold. This statement has stirred conversations in financial circles.“People use Bitcoin as a speculative asset, right? It’s like gold—only it’s virtual, it’s digital,” Powell said. (adsbygoogle = window.adsbygoogle || []).push({});-->While Bitcoin enjoys a reputation for disrupting traditional finance, its volatility and lack of widespread use for payments or savings disqualify it as a dollar competitor, in his view. “People are not using it as a form of payment or a store of value,” he added. The chairman didn’t mince words about Bitcoin’s instability, calling it “highly volatile.” Such volatility underpins his assertion that Bitcoin aligns more closely with gold’s speculative appeal than the US dollar’s stability. These remarks revealed Powell’s stance and highlighted the Federal Reserve’s perception of the cryptocurrency landscape. Federal Reserve’s Role in the Crypto EraDigging deeper into the Fed’s relationship with digital assets, Powell stressed that the central bank’s role is primarily observational. “Our job is to see how these assets interact with the banking system,” he said. Notably, he clarified that while the Fed monitors developments in the crypto world, it does not directly regulate these assets. When pressed on his personal stake in the crypto market, Powell confirmed that he abstains from holding any digital assets. “I’m not allowed to own such assets because of my position,” he stated, demonstrating a commitment to maintaining impartiality amidst the evolving crypto ecosystem. While crypto dominated the spotlight, Powell took time to address the broader economy. He painted an optimistic picture, describing the US economy as being in “great shape right now.” Yet, he acknowledged challenges, particularly around growth and inflation.
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