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Fed Chair Powell: ‘Crypto is substitute for gold not U.S. dollar’ | Kitco News

By Thomas A. Smith

– Leading global central banks, including the Federal Reserve, said that they are not threatened by the growing advancement of digital currencies and stable coins.

Monday, speaking in a panel discussion at the Bank for International Settlements (BIS) Innovation Summit, Federal Reserve Chair Jerome Powell dismissed bitcoin‘s role as a global currency, saying that it is too volatile for consumers.

Powell described bitcoin as a speculative asset that is not backed by anything.

“Crypto assets are highly volatile and therefore not useful as a store of value,” he said. “It is a speculative asset that is essentially a substitute for gold rather than for the dollar.”

via www.kitco.com