Federal Reserve Chair Jerome Powell reiterated the bank’s position on a Bitcoin reserve from an existing legal perspective. Speaking at a routine conference after announcing monetary decisions, Fed Chair Powell stated that the U.S. central bank cannot own Bitcoin (BTC) and, thus, is unable to hold a BTC reserve. The bank regulator stressed that current laws do not authorize a Fed BTC reserve. America’s apex bank is also disinterested in any law changes that would permit a formally recognized government-managed BTC stockpile, Powell added.
Powell shared the remarks shortly after the year’s last Federal Open Market Committee, where the Fed announced a 25 basis point cut to interest rates. Bitcoin continued a downward trend following the rate cut news, falling 2.1% in an hour and hovering around $101,400 as of writing.
24-hour BTC price chart – Dec. 18 | Source: ethdaily.net
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Powell’s Bitcoin comments not new
It’s not the first time Powell has made these statements. Fed Powell has repeatedly asserted the same declaration at several post-FOMC meetings before. However, it’s one of the first times Powell has said so since the U.S. chose Donald Trump as its 47th president. Powell’s comments likely caught attention this time due to Trump’s plan for a national strategic Bitcoin reserve. While widely supported by legislators like Senator Cynthia Lumis and industry leaders at large, a few crypto experts, like Castle Island Venture founding partner Nic Carter, were skeptical about the move. Carter opined that creating a U.S.-managed BTC reserve could spark doubts about the dollar’s strength and its role as a global reserve currency.
Read more: Bitcoin advocate hints at ‘strategic reserve’ laws in 10 US states. {cn-block-related-link}