Fed Chairman Jerome Powell weighed in on Bitcoin sentiment at the DealBook summit on Wednesday, saying the cryptocurrency giant is akin to gold, a safe-haven asset.
He said many users view Bitcoin as a speculative asset like gold but in digital form.
Powell dismissed the notion that Bitcoin would be affected by the Fed’s tone or the strength of the U.S. dollar, stressing that the cryptocurrency is still not used in major payments because its price movements are so volatile.
He said Bitcoin is no longer a competitor to the dollar, but it has already surpassed gold.
The possibility of interaction between the cryptocurrency ecosystem and the traditional banking system would not challenge Fed policies.
In addition, the Fed is not responsible for regulating the cryptocurrency industry. Powell also said that he is not allowed to own Bitcoin because the news would cause a sensational story in the financial markets
