#PowellRemarks

Jerome Powell's Position on Digital Currencies:

1. Bitcoin as Digital Gold: In December 2024, Powell described Bitcoin as "digital gold," pointing out that it is a speculative asset and not a reliable means of payment or store of value. He emphasized that Bitcoin does not compete with the US dollar, but rather competes with gold as an investment asset.

2. Warning About Risks: Powell expressed concern about the volatility of digital currencies and their potential use in illegal activities, such as money laundering and financing terrorism. He stressed the necessity for the public to understand the risks associated with investing in these assets.

3. Central Bank Digital Currencies (CBDCs): Powell announced that the Federal Reserve does not intend to issue a central digital currency during his tenure, which ends in May 2026. He confirmed that any step in this direction would require legislative support from Congress.

4. Need for New Regulation: Powell noted that current regulatory frameworks are not suitable for the world of digital currencies, emphasizing the need for new laws and regulations to protect consumers and ensure the stability of the financial system.