In an unprecedented turn of events, Bitcoin yesterday received an endorsement from two of the world’s most influential leaders. US Federal Reserve Chairman Jerome Powell and Russian President Vladimir Putin independently acknowledged the growing importance of cryptocurrency during separate events on December 4, 2024. Their statements signal a potential paradigm shift in the global financial landscape, as Bitcoin continues to gain mainstream acceptance.
Jerome Powell compares Bitcoin to gold
During the New York Times DealBook Summit, Jerome Powell participated in a conversation with Andrew Sorkin about the role of cryptocurrencies in the banking system. When asked about the growing importance of Bitcoin and talks in Washington about creating a strategic reserve for Bitcoin, Powell outlined the Fed’s view.
“Of the jobs that we have, what is relevant is actually two things,” Powell said. “The first is, you know, what role should crypto assets be allowed to play in the banking system. We’re trying to keep the banking system safe and sound. We regulate and supervise banks, and we want the interaction between crypto businesses and banks to not threaten the health and well-being of banks.”
Powell added that another mission of the US Federal Reserve is consumer protection. “We want the public to know about crypto products and things like that. There’s kind of a consumer protection aspect to it. They need to understand exactly what it is. But we don’t regulate it directly and we don’t have that big of a role.”
When asked if he would own Bitcoin himself, Powell answered succinctly: “I’m not allowed to.”
Sorkin then suggested that bitcoin might symbolize people’s faith — or lack thereof — in the US dollar or the Federal Reserve. Powell responded by likening Bitcoin to a traditional store of value: “I don’t think that’s the way people think about it. I mean people use Bitcoin as a speculative asset, right? It’s like gold. It’s just like gold, only virtual. It’s digital. No.” People use it as a means of payment or as a store of value. It’s not a competitor to the dollar, you know, that’s really the way I think about it.
Vladimir Putin highlights Bitcoin’s flexibility
On the same day, President Vladimir Putin spoke at the “Russia Calling” forum, where he discussed the US dollar’s diminishing dominance and the rise of alternative financial instruments. Putin stressed the inevitability of new technologies such as Bitcoin in reshaping the global economy.
“Using the dollar as a global currency gives the United States a lot of money,” Putin said. “Thanks to the dollar, the United States continues to exploit other world economies to its advantage. One thing is to prevent the use of the dollar, and another thing is not to use it. That is why we see (economic) processes using other tools.”
He added clearly: “For example, who can ban Bitcoin? Nobody. And who can ban the use of other electronic payment methods? Nobody. Because these are new technologies. Whatever happens to the dollar, these tools will develop in one way or another, because everyone will seek Strive to reduce costs and increase reliability.
Putin also commented on the global shift away from the dollar: “Even countries allied with the United States have reduced their dollar and euro currency reserves.”
today…
Jerome Powell: “It’s like gold, but virtual. It’s digital. People don’t use it as a means of payment or as a store of value. It’s very volatile. It’s not a competitor to the dollar. It’s a competitor to gold.”
Vladimir Putin: “For example, Bitcoin, which… pic.twitter.com/kWenz2kMJB
– Sam Callahan (@samcallah) December 4, 2024
Feedback from the community
The endorsements by Powell and Putin sparked immediate reactions from prominent figures in the cryptocurrency space. Vijay Boyapati, a former Google engineer and author known for his book The Bullish Case for Bitcoin, has moved to X He crosses His thoughts: “Jerome Powell calling Bitcoin digital gold is the biggest endorsement of Bitcoin yet, if you understand where the financial power lies. Bigger than Fink or even Trump.”
David Bailey, CEO of BTC Inc and an advisor to former President Trump’s team – who was instrumental in turning Trump into a Bitcoin supporter – also Weighed in Via to the United States for Bitcoin supply.”
At press time, Bitcoin was trading at $102,335.
Featured image created with DALL.E, a chart from TradingView.com
Comments are closed, but trackbacks and pingbacks are open.