Fed Chair Jerome Powell Admits Bitcoin is ‘Digital Gold’

In a recent interview, Federal Reserve Chair Jerome Powell described Bitcoin as a speculative asset similar to gold. He acknowledged BTC’s role as “digital gold.” However, Powell emphasized significant drawbacks, dismissing its viability as a payment method, a store of value, or a competitor to the U.S. dollar.

Fed Chair Says Bitcoin is ‘Digital Gold’

“People use Bitcoin as a speculative asset,” Powell remarked, likening it to gold but noting its virtual, digital nature. Despite acknowledging BTC as “digital gold,” he downplayed its broader utility. “People are not using it as a form of payment or as a store of value. It’s highly volatile,” Powell stated, according to a CNBC livestream.

The Fed Chair’s characterization aligns with concerns about Bitcoin price swings, which hinder its adoption for everyday transactions or as a reliable reserve of wealth. By labeling Bitcoin as “not a competitor for the dollar,” Powell reiterated the Fed’s stance that the U.S. dollar remains unchallenged as the global reserve currency. Instead, he framed Bitcoin as primarily competing with gold.

Powell’s comments highlight the growing perception of BTC as an alternative investment rather than a currency. His statements also underscore lingering skepticism about its practical applications despite its rising prominence among institutional and retail investors.

Russia’s President Bullish on BTC

While Powell believes that BTC’s role is limited to being “digital gold,” Russian President Vladimir Putin differs. Today, he offered a bullish take on the flagship crypto, saying that “no on can ban Bitcoin.” He believes that BTC is here to grow and no one can limit it.

This statement comes amid the BRICS bloc’s dedollarization efforts as they plan to use a stablecoin to dethrone USD as the world’s leading currency for international transfers. Hence, Powell comments also seem to break this narrative that Bitcoin or crypto could be successfully used against the U.S. Dollar.

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