Fed Chairman Jerome Powell Says Bitcoin Is a Substitute for Gold
Federal Reserve Chairman Jerome Powell sees cryptocurrency as
a substitute for gold, rather than the dollar. However, he cautioned
that crypto assets, including bitcoin, are highly volatile and not
useful as a store of value.
Fed Chair Sees Bitcoin as a Gold Substitute
During a webinar sponsored by the Bank of International Settlements
(BIS) on Monday, Federal Reserve Chairman Jerome Powell talked about
cryptocurrency, mentioning bitcoin in particular.
The Fed chair detailed: “Crypto assets are highly volatile, see
bitcoin, and therefore are not really useful as a store of value. And,
they are not backed by anything. They are more of an asset for
speculation. They are also not particularly in use as a means of
payment.” He elaborated:
It’s more a speculative asset. It’s essentially a substitute for gold, rather than for the dollar.
Powell proceeded to say that with crypto assets, “the public needs to
understand the risks. The principal thing is there’s the volatility.
There’s also the outsized energy requirement for mining, and the fact
that they’re not backed by anything.”
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