Bitcoin’s Rising Influence: Endorsements by Powell and Putin
In a groundbreaking development, Bitcoin has received significant recognition from two of the most powerful figures in international finance. On December 4, 2024, both Jerome Powell, Chair of the US Federal Reserve, and Russian President Vladimir Putin acknowledged the growing importance of Bitcoin in separate events. Their statements suggest a transformative shift in the global economic arena as Bitcoin continues to secure mainstream acceptance.
Jerome Powell: Bitcoin as the Digital Gold
Speaking at the prestigious New York Times DealBook Summit, Jerome Powell addressed the evolving role of digital currencies within the banking sector in a dialogue with Andrew Sorkin. When questioned about Bitcoin’s escalating prominence and discussions in Washington regarding the establishment of a strategic Bitcoin reserve, Powell shared insights from the Federal Reserve’s viewpoint.
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“We focus on two main aspects,” Powell explained. “Firstly, the role crypto assets should play in the banking ecosystem. Our aim is to safeguard the banking system’s stability. We supervise banks and ensure that their interactions with the crypto industry do not jeopardize their soundness.”
Powell further emphasized the importance of consumer protection. “Educating the public about crypto products is vital. There’s a consumer protection element that needs addressing. However, we don’t directly regulate these assets nor do we have a substantial role in their oversight.”
When asked about his personal stance on owning Bitcoin, Powell responded, “I’m not permitted to.” Sorkin suggested that Bitcoin could reflect public sentiment towards the US dollar or the Federal Reserve. Powell likened Bitcoin to a speculative asset akin to gold, stating, “It’s comparable to gold, being virtual and digital. It’s not widely used for payments or as a stable store of value. Its volatility makes it more of a competitor to gold than a threat to the dollar.”
Vladimir Putin: Bitcoin’s Indomitable Presence
Simultaneously, President Vladimir Putin addressed the audience at the Russia Calling forum, where he discussed the waning dominance of the US dollar and the emergence of alternative financial instruments. Putin highlighted the inevitability of innovative technologies like Bitcoin in transforming the global economic landscape.
“The US benefits significantly from the dollar’s status as a world currency,” remarked Putin. “This allows the US to leverage other economies for its advantage. While banning the dollar is one thing, choosing not to use it is another. Hence, we witness economic shifts towards other instruments.”
Putin stressed the resilience of Bitcoin, saying, “Who can ban Bitcoin? It’s impossible. These technologies will advance regardless of the dollar’s fate, as there is a universal drive to minimize costs and enhance reliability.” He also noted the global trend of reducing dollar reserves, even among US allies.
Community Reactions
The endorsements from Powell and Putin prompted swift reactions from notable figures in the cryptocurrency community. Vijay Boyapati, a former Google engineer and author of “The Bullish Case for Bitcoin,” expressed on X: “Jerome Powell’s comparison of Bitcoin to digital gold is a monumental endorsement, given the centers of financial power. It surpasses endorsements from figures like Fink or even Trump.”
David Bailey, CEO of BTC Inc and advisor to former President Trump’s team, who played a key role in shifting Trump’s stance to pro-Bitcoin, also shared his thoughts on X: “The Bitcoin Space Race is unfolding. It’s crucial to prioritize the establishment of a Strategic Bitcoin Reserve within the first 100 days of the Trump administration. We need an assertive strategy to increase the US’s share of the Bitcoin supply.”
As of now, Bitcoin is valued at $102,335.
The ascent of Bitcoin beyond the $100,000 mark is a testament to its growing credibility and influence in the financial world.
