Federal Reserve Chairman Jerome Powell sees cryptocurrencies as a replacement for gold, not the dollar. However, he warned that crypto assets, including bitcoin, are highly volatile and are not a good store of value.
Federal president sees bitcoin as a replacement for gold
During a webinar sponsored by the Bank for International Settlements (BIS) on Monday, Federal Reserve Chairman Jerome Powell spoke about cryptocurrencies, mentioning bitcoin in particular.
The president of the Feds said: Crypto assets are very volatile, see bitcoin, so they are not very useful as a store of value. And they are not supported by anything. They are more of a vehicle for speculation. Nor are they particularly used as a means of payment. He designed it:
It’s more of a speculative investment. It is essentially a substitute for gold, not the dollar.
Powell went on to say that with crypto assets, the public needs to understand the risks. Most importantly, there is volatility. Added to this is the excessive demand for energy for mining and the fact that it is not covered by anything.
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