Federal Reserve Chair Jerome Powell Reiterates Stance on Bitcoin Reserve

Federal Reserve Chair Jerome Powell recently reaffirmed the central bank’s position on a Bitcoin reserve, emphasizing that the U.S. central bank is not authorized to own Bitcoin (BTC) under current laws.

During a routine conference following the announcement of monetary decisions, Powell stated that the Fed cannot hold a BTC reserve due to existing legal restrictions. Furthermore, the bank regulator expressed disinterest in any law changes that would permit a government-managed BTC stockpile.

Background and Context

Powell’s comments came shortly after the year’s last Federal Open Market Committee meeting, where the Fed announced a 25 basis point cut to interest rates. Following the rate cut news, Bitcoin prices continued a downward trend, falling 2.1% in an hour and hovering around $101,400.

Powell’s Comments Not New, but Timing Sparks Attention

Although Powell’s statements are not new, having been repeated at several post-FOMC meetings before, this time they garnered attention due to President Donald Trump’s plan for a national strategic Bitcoin reserve.

While the idea of a U.S.-managed BTC reserve has garnered support from legislators and industry leaders, some experts, like Castle Island Venture founding partner Nic Carter, have expressed skepticism. Carter believes that creating a U.S.-managed BTC reserve could raise doubts about the dollar’s strength and its role as a global reserve currency.

“…it wouldn’t benefit anyone if we were to shake confidence in global markets by implying the dollar is at risk.”

Key Takeaways

Here are some key points to consider:

  • The Federal Reserve is not authorized to own Bitcoin (BTC) under current laws.
  • The Fed is disinterested in law changes that would permit a government-managed BTC stockpile.
  • Creating a U.S.-managed BTC reserve could raise doubts about the dollar’s strength and its role as a global reserve currency.

Stay up-to-date with the latest news and developments in the world of cryptocurrencies and finance on Global Crypto News.

Post Views: 1