Emily Walker
In a historic move, Bitcoin received notable support from two key global leaders. On December 4, 2024, Jerome Powell, the Chair of the US Federal Reserve, and Vladimir Putin, President of Russia, acknowledged the importance of Bitcoin independently during different events. Their comments hint at a potential shift in the international financial system as Bitcoin gains broader recognition.
Powell Compares Bitcoin to Gold
At the New York Times DealBook Summit, Jerome Powell discussed cryptocurrencies with Andrew Sorkin, particularly focusing on Bitcoin’s increasing role and the potential for a strategic BTC reserve in Washington. He characterized the Federal Reserve’s stance on cryptocurrency:
“What’s important is two things: How should crypto assets be integrated into the banking system and ensuring the safety of the banking sector. Our goal is to manage the banking system effectively to prevent any risks from crypto interactions.”
Powell also highlighted the Federal Reserve’s commitment to consumer protection: “It’s vital for people to comprehend what crypto products are. While we ensure consumer safety, we don’t declare direct regulations and our involvement is limited.”
When asked about owning Bitcoin, Powell simply stated, “I’m not allowed to.”
When Sorkin mentioned that Bitcoin might reflect public sentiment towards the US dollar or Federal Reserve, Powell clarified, “People mainly see Bitcoin as a speculative asset similar to gold. It’s volatile and not used primarily as a payment method or value storage; it’s more like a competitor to gold in its essence.”
Putin Acknowledges Bitcoin’s Strength
On the same day, President Putin addressed the Russia Calling forum, discussing the weakening status of the US dollar and the emergence of new financial instruments. He asserted that innovations like Bitcoin are essential for transforming the global economy.
“The US benefits significantly from using the dollar as a global currency,” Putin remarked. “This allows the US to leverage other economies. While it’s easy to impose restrictions on dollar usage, alternative methods are becoming more prominent.”
He emphasized, “Who can really ban Bitcoin? No one. Likewise, no one can stop other digital payment methods. These technologies will continue to evolve, regardless of what happens with the dollar, as there’s a universal push towards efficiency and trust.”
Putin also noted the global transition away from the dollar: “Even the US’s allies are diversifying their currency reserves away from the dollar and euro.”
Today…
Jerome Powell: “It’s just like gold only it’s virtual. It’s digital. People are not using it as a form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar. It’s a competitor for gold.”
Vladimir Putin: “For example, Bitcoin, who… pic.twitter.com/kWenz2kMJB
— Sam Callahan (@samcallah) December 4, 2024
Community Reactions
The statements from Powell and Putin drew quick responses from various figures within 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 major endorsement if you grasp where financial power resides—bigger than even Fink or Trump.”
David Bailey, CEO of BTC Inc and a key figure in former President Trump’s pro-Bitcoin strategy, also shared his insights via X: “The Bitcoin Space Race has begun. This situation underscores the need for the US to establish a Strategic Bitcoin Reserve as a national priority, especially in the initial days of a Trump administration.”
As of the latest update, Bitcoin is trading at $102,335.
