Bitcoin Competes with Gold, Not Currency, Says Fed Reserve Chairman

Federal Reserve Chairman Jerome Powell has stated that Bitcoin is a competitor to gold rather than a rival to the U.S. dollar.

At the New York Times DealBook Summit, Powell suggested that Bitcoin’s value lies more in its role as a store of value or investment asset, akin to gold, rather than as a medium of exchange or a unit of account, which are core features of traditional currencies.

“It’s just like gold only it’s virtual,” Powell said. “People are not using it as a form of payment, or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold.”

Powell emphasized the need for the growing cryptocurrency industry to integrate responsibly within the traditional banking system. He expressed concern about ensuring that the crypto sector operates safely and under proper regulatory supervision.

While the Federal Reserve does not directly regulate the crypto industry, Powell stressed the need for safeguards to ensure the security and fairness of the market for all participants.

When asked if he owned any crypto, the Fed chair answered simply, stating he was “not allowed to.”

Bitcoin has experienced a sharp surge in value, reaching record highs following the election of Donald Trump as President. At a Bitcoin conference in July, Trump pledged to establish a national Bitcoin reserve, reinforcing his vision of positioning the U.S. as a global leader in cryptocurrency innovation.

He emphasized the importance of securing the country’s dominance in the crypto space to avoid falling behind economic rivals.

As of Wednesday afternoon, Bitcoin was trading at approximately $96,000, marking a significant milestone in its continued rise. Optimism remains high among cryptocurrency enthusiasts, with many speculating that the digital asset could surpass the $100,000 threshold before the end of the year.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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