Powell: Bitcoin is a competitor to gold

Federal Reserve Chairman Powell said at the DealBook Summit on Wednesday that people use Bitcoin as a speculative asset. It's like gold - just virtual and digital. But he also said that due to Bitcoin's high volatility, it has not been used as a major payment method or a reliable store of value, "it is not a competitor to the dollar. It is actually a competitor to gold." When asked about potential national Bitcoin reserves, Powell emphasized that the Fed's goal is to keep the banking system "safe and sound." Powell stated that the interactions between the cryptocurrency ecosystem and the traditional financial banking system should not threaten the latter's health. He further pointed out that regulating the cryptocurrency industry is not the responsibility of the Federal Reserve. When asked if he personally owns Bitcoin, Powell said "he is not allowed" to own Bitcoin.