Powell dismissed suggestions that Bitcoin undermines the Federal Reserve or the strength of the US dollar, noting that Bitcoin is not used as a primary form of payment or as a reliable store of value due to its high volatility.
When asked about the potential for a national Bitcoin reserve, Powell emphasized the Federal Reserve's goal of keeping the banking system safe and sound.
Powell said that potential interactions between the cryptocurrency ecosystem and the traditional financial banking system should not threaten the health of the traditional banking system, Powell said.
He further pointed out that it is not the Federal Reserve's responsibility to regulate the cryptocurrency industry. When asked if he himself owns Bitcoin, Powell said he is not allowed to own any.
Powell also discussed the state of the US economy, saying it is in very good shape. Powell attributed this strength to stable growth and declining inflation.
Previously, Bitcoin had hit a new record high on Thursday, December 5, 2024, breaking through a price of USD 103,000 or equivalent to IDR 1.63 billion (assuming an exchange rate of IDR 15,865 per US dollar). Bitcoin has strengthened more than 40 percent since Donald Trump's victory in the US election in November.
Trump took to his social media platform Truth Social on Thursday to congratulate crypto investors on Bitcoin's recent surge above $100,000.
"Congratulations Bitcoin fans, $100,000. Together, we will make America great again," Donald Trump said on his social media platform Truth Social, as quoted by Yahoo Finance, Friday (6/12/2024).
The token's latest surge comes after Trump picked Paul Atkins to head the U.S. Securities and Exchange Commission (SEC). Atkins is seen as a crypto-friendly choice for the position.
