In an unprecedented move, Bitcoin received approval from two of the world’s most powerful leaders yesterday. The Chairman of the US Federal Reserve Jerome Powell and the President of Russia Vladimir Putin independently acknowledged the growing importance of cryptocurrency during separate events on December 4, 2024. Their words indicate the possibility of a change in the global financial situation, as Bitcoin continues to be generally accepted.
Jerome Powell Compares Bitcoin to Gold
During the New York Times DealBook Summit, Jerome Powell participated in a discussion with Andrew Sorkin about the role of cryptocurrencies in the banking system. When asked about the growing prominence of Bitcoin and discussions in Washington about creating a strategic BTC reserve, Powell explained the Federal Reserve’s vision.
“For the jobs we have, there are two things that matter,” Powell said. “It’s just another, 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 the banks, and we want the interaction between the crypto business and the banks not to threaten the health and well-being of the banks.”
Powell added that another job of the US Federal Reserve is to protect consumers. “We would like the public to know about crypto products and things like that. There is a sort of consumer protection feature in it. They need to understand exactly what it is. But we don’t directly control it and we don’t have that big of a role.”
When asked if he could own Bitcoin himself, Powell simply replied, “I’m not allowed.”
Sorkin then suggested that BTC might represent people’s faith—or lack thereof—in the US dollar or the Federal Reserve. Powell responded by comparing Bitcoin to a traditional store of value: “I don’t think that’s how people think about it. I mean, people use Bitcoin as a speculative asset, right? It’s like gold. It’s like gold, only visible. It’s digital. People don’t use it as a form of payment or as a store of value. It is very flexible. It is not a dollar competitor. It really is a contender for gold. You know, that’s really what I’m thinking about.”
Vladimir Putin Highlights Bitcoin’s Strength
On the same day, President Vladimir Putin spoke at the Russia Calling conference, where he discussed the decline of the dominance of the US dollar and the rise of other financial instruments. Putin emphasized the inevitability of new technologies like BTC in reshaping the global economy.
“The use of the dollar as a world currency gives the US a lot of money,” Putin said. “Because of the dollar, the US continues to exploit other world economies for its own benefit. It is one thing to prevent the use of dollars and another thing not to use them. That is why we see (economic) processes using other instruments.”
He specifically added, “For example, who can block Bitcoin? There is no. And who can prevent the use of electronic payment methods? There is no. Because this is new technology. And no matter what happens to the dollar, these tools will improve in one way or another, because everyone will strive to reduce costs and increase reliability.
Putin also commented on the movement of the dollar around the world: “Even countries that are allies of the US have reduced their reserves in dollars and euros.”
Today…
Jerome Powell: “It’s just like gold only it’s virtual. It’s digital. People don’t use it as a form of payment or as a store of value. It is very flexible. It is not a dollar competitor. It is a contender for gold.”
Vladimir Putin: “For example, Bitcoin,… pic.twitter.com/kWenz2kMJB
— Sam Callahan (@samcallah) December 4, 2024
Reaction from the Community
The endorsements from Powell and Putin prompted an immediate reaction from prominent figures in the cryptocurrency space. Vijay Boyapati, former Google engineer and author known for his book The Bullish Case for Bitcoin, went to X to express his thoughts: “Jerome Powell calling Bitcoin digital gold is the biggest endorsement of Bitcoin yet, if you understand that financial power where is it? Bigger than Fink or Trump. “
David Bailey, CEO of BTC Inc and advisor to former President Trump’s team—who was instrumental in turning Trump pro-Bitcoin—also weighed in on X: “The Bitcoin Space race is here. […] It was not clear what was going on. It must be a national priority to stop the Strategic Bitcoin Reserve in the first 100 days of the Trump administration. We need a strong plan to increase the USA’s equal ownership of the Bitcoin supply.”
At press time, BTC traded at $102,335.
The featured image was created with DALL.E, a chart from TradingView.com