Fed Chair Jerome Powell Says, 'We're Not Allowed to Own Bitcoin' Amid Trump’s Push for Bitcoin Strategic Reserve

 In a recent statement, Federal Reserve Chair Jerome Powell emphasized that the Federal Reserve is prohibited from holding Bitcoin, despite growing interest in cryptocurrencies and former President Donald Trump’s proposal for a Bitcoin Strategic Reserve. Powell’s comments came during a press conference following the Federal Open Market Committee’s meeting.

“We're not allowed to own Bitcoin,” Powell said, reinforcing the Federal Reserve’s stance on digital currencies. This position comes at a time when Trump has been vocal about the potential benefits of Bitcoin for the U.S. economy, even suggesting that the U.S. government could establish a Bitcoin Strategic Reserve to help strengthen the nation’s financial standing.

Trump's idea involves the U.S. government accumulating Bitcoin as part of its reserves, similar to the way gold has been used historically. The proposal has sparked widespread debate, with some arguing that it could provide an alternative store of value and reduce reliance on the U.S. dollar.

Powell, however, stressed that the Fed’s role is centered on regulating and overseeing the U.S. monetary system, not engaging in investments or holding assets like Bitcoin. While the Fed is exploring the development of a digital dollar, Powell made it clear that the Federal Reserve does not plan to hold cryptocurrencies directly.

This stark contrast in views between the Fed's leadership and Trump's vision reflects the ongoing debate over the role of digital assets in the global financial landscape. While cryptocurrencies like Bitcoin continue to gain popularity among investors and some policymakers, regulatory bodies, including the Fed, remain cautious in their approach to adopting such assets on a national scale.

As the conversation surrounding Bitcoin's future continues, the divergence in opinion underscores the complexity of integrating digital currencies into traditional financial systems.

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