Bitcoin has recently become known as an investment instrument called “digital gold” to preserve the value of money; Powell says the same.
The chairman of the Federal Reserve (The Fed), the central bank of the United States, has publicly called Bitcoin (BTC) a competitor to gold due to the aspect of preserving the value of money rather than using it as currency.
He also noted that the burgeoning cryptocurrency industry must find a place that is suitable for the mainstream banking system, which is his concern, and that it must be secure and supervised.
While the central bank does not regulate cryptocurrencies directly, Powell intends to ensure that people involved in these digital assets have consumer protections no matter which crypto product they own.
Powell also stated that he "does not own" any cryptocurrency, after being questioned by American journalist and author at the time, Andrew Ross Sorkin.
Powell on the Trump administration
Donald Trump, who was re-elected as US president after defeating Kamala Harris, was known to have a heated relationship with Powell in 2016. Trump even threatened to fire Powell once he was sworn in, but the president declined to comment.
Trump, on the other hand, has taken a strong stance on the future of Bitcoin in the country. He even introduced the Bitcoin Strategic Reserve and stated that it could be a solution to the debt crisis.
The Republican party supports the idea by presenting the BITCOIN Law to Congress by Senator Cynthia Lummis. This proposal also received thousands of supports from financial companies and investors.