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Fed’s Powell on crypto: It’s a speculative asset, not useful as a store of value

CryptocurrencyMar 23, 2021 12:34
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© Reuters.

By Samuel Indyk

Investing.com – The Federal Reserve Chairman Jerome Powell said on Monday that cryptocurrencies were not a useful store of value and called them a speculative asset.

“Crypto assets are highly volatile, see bitcoin, and therefore not really useful as a store of value,” Powell said at the Bank for International Settlements’ digital banking conference. “It’s more of a speculative asset that’s essentially a substitute for gold rather than for the dollar.”

The comments from the Fed chair come amid a rally in cryptocurrencies which has seen Bitcoin jump from a low below $6,000 to a high above $60,000 in less than 12 months.

However, following the comments at the conference, Bitcoin has moved further from its all-time high, dropping below $53,000 at one stage today.

Central Bank Digital Currencies

Powell also spoke about the Fed potentially issuing their own digital currency but, judging by his comments, it is unlikely there will be anything any time soon.

“To move forward on this, we would need buy-in from Congress, from the administration, from broad elements of the public, and we haven’t really begun the job of that public engagement,” the Fed chair said. “So you can expect us to move with great care and transparency with regard to developing a central bank digital currency.”

Fed’s Powell on crypto: It’s a speculative asset, not useful as a store of value
 

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Comments (22)
Dirk Reynen
Dirk Reynen Mar 24, 2021 7:36
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F the FR
Dirk Reynen
Dirk Reynen Mar 24, 2021 7:35
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Paper money has no value either apart from the speculative value that goverments say they have! In the old days paper money was backed by gold on a 1:3 bases now its as high as 20:1 and that is easily seen in the annual inflation reports! Boom 💥dont come with your federal reserve garbage bs here matey you literally are getting told your stupid foundations to the entire monetary system are getting shaken. You best pay attention. People are tired of greedy goverments like the FR pocketing millions in wealth while we all remain poor. Buy BITCOIN ❤️🔥👌🏼🚀
jan hui
jan hui Mar 24, 2021 7:13
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Van gogh paintings, Pokemon cards, vintage cars, limited edition watches...anything is a store of value as long as there is a sustained demand
Shax Rashid
Shax Rashid Mar 24, 2021 6:45
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would love to see ir Ban
Aaron Chua
Aaron Chua Mar 24, 2021 1:40
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its not gold, crypto, fiats, etc that defines the value. its the regulatory. If crypto do not have worldwide govt support, then don't talk about value. They might even declare it as illegal if needed.
Hulio Alvarez
Hulio Alvarez Mar 23, 2021 16:34
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I'd say I agree with Powell. Much rather invest in precious metals which tend to be more stable but will have greater value during times of conflict. Bitcoin and similar will lose their value.
Deepak Shetty
Deepak Shetty Mar 23, 2021 15:53
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how it's a substitute for gold when it's not a useful store of value? Inbetweeners, don't want to discourage Bitcoin investors...
uPleasure uPleasure
uPleasure uPleasure Mar 23, 2021 14:42
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They are the one own Bitcoin..
uPleasure uPleasure
uPleasure uPleasure Mar 23, 2021 14:42
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talking crap...
Ioannis Papadimitrakopoulos
Ioannis Papadimitrakopoulos Mar 23, 2021 13:51
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funny not a useful store of value but it is more substitute of gold.
Jonathan Stoner
Jonathan Stoner Mar 23, 2021 13:02
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except gold is exchangeable anywhere and bitcoin doesn't even exist
Ben Smith
Ben Smith Mar 23, 2021 13:02
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Have fun staying poor
Emanuel Zwyssig
Emanuel Zwyssig Mar 23, 2021 13:02
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What do you think how much Gold the US has??? They sold triple of the gold they actually have
Will Taylor
Will Taylor Mar 23, 2021 12:57
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So is the dollar a better store of value? Because relative to its purchasing power, doesnt look like it. Also cant this ***just tell us we are goinf back to a gold standard now, its beyond obvious. Looking for a store of vAlUe, the only one being gold.
Hans Ontits
Hans Ontits Mar 23, 2021 12:52
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Talk about stating the obvious.
You Got this
You Got this Mar 23, 2021 12:52
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Who created central bank? Humans...Law can be break. And stop hidding anything from the world humans
Al Mighty
Al Mighty Mar 23, 2021 12:47
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Fantastic, are we coming back to gold parity then?!
STEPHEN HUNTER
STEPHEN HUNTER Mar 23, 2021 12:47
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haha debt is the currency of today
Al Mighty
Al Mighty Mar 23, 2021 12:47
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Glen Scott
Glen Scott Mar 23, 2021 12:46
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He’s totally correct, for now!!! Don’t underestimate the power of the people and their willingness to drop the government fiat in a heart beat if there are alternatives on the table. We’re in the crypto bull run right now which will run a long long time, which will then in turn stabalise the market and volitility will dissolve. Blockchain cannot be stopped.
richard bidgood
richard bidgood Mar 23, 2021 12:43
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Well paypal seem happy using bitcoin
Glen Scott
Glen Scott Mar 23, 2021 12:43
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He’s totally correct, for now!!! Don’t underestimate the power of the people and their willingness to drop the government fiat in a heart beat if there are alternatives on the table. We’re in the crypto bull run right now which will run w long long time, until it will become a store of value with much less volitility. Blockchain cannot be stopped.
Francis Pun
Francis Pun Mar 23, 2021 12:42
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Famous last words...
Voilet Ace
Voilet Ace Mar 23, 2021 12:39
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Kiss my bum bum lol crypto is the best currency that has been created, everyone - buy crypto, invest in crypto and hold it!!!
Chavi Alto
Chavi Alto Mar 23, 2021 12:39
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OMG this will cause reactive pumps in cryptomarket 🤦‍♂️
Sam Plumb
Sam Plumb Mar 23, 2021 12:38
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Makes me want to buy more
Jay Sanders
Jay Sanders Mar 23, 2021 12:38
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Actually it is positive what he said. Reafirmed its status as digital gold. No danger for dollar hence no risk of outright ban. Great news
Ashrawi Yolo
Ashrawi Yolo Mar 23, 2021 12:38
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Jay Sanders true...i rather let them think bitcoin is ‘speculative’ rather than outright ban btc
 
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