Fed Chairman Powell: "We should not own Bitcoin"

The discussion of a strategic Bitcoin reserve is reaching the United States. Now Federal Reserve Chairman Jerome Powell gives his opinion.

The Federal Reserve Bank (Fed) last Wednesday, Dec. 18, cut interest rates again by 0.25 percentage point to a range of 4.25 to 4.5 percent. Despite this interest rate cut, the crypto market is still in the red.

During a press conference, Fed Chairman Jerome Powell also spoke about Bitcoin. When asked if the Federal Reserve might own Bitcoin, he replied, "We are not allowed to own Bitcoin. The Federal Reserve Act defines what we can and cannot own, and we are not seeking a change in the law. That is an issue for Congress, but we at the Fed are not seeking a change in the law."

The background to this is an ongoing discussion about the inclusion of a strategic Bitcoin reserve in the U.S., an idea introduced by incoming U.S. President Donald Trump himself.

Also in Germany, there are attempts by the FDP (Free Democratic Party) to include Bitcoin as a strategic reserve.