After Fed Chairman Jerome Powell’s statement about the ability of central banks to store BTC, Bitcoin prices are now approaching $100,000.
Powell answered questions from journalists after the Fed announced it had lowered its main interest rate for a third time in a row by one quarter of a percentage point.
Powell, when asked whether he saw any benefit in a Fed reserve of Bitcoins, said that current laws made it impossible.
We’re not allowed own Bitcoin. We’re happy with the Federal Reserve Act, which dictates what we are allowed to own.
Federal Reserve Act defines the assets that a central bank may hold. These include US government bonds, mortgage-backed assets, and assets that are related to monetary policy.
Powell claims that only an act of Congress can permit the Fed to purchase BTC, which is not something Powell has any interest in.
Powell’s announcement sent BTC down from about $103,700 in just less than an hours to $100,241.
The President-elect Trump said that he would ensure that the US stopped selling the troves of Bitcoin it had seized on the market, and hold them instead as investments.
When asked by CNBC if he planned to create a BTC strategic reserve, Trump replied “Yeah I do.” But to date, Trump still hasn’t made a public statement about the Fed buying BTC directly.
Wyoming Republican Senator Cynthia Lummis introduced legislation directing the Fed to purchase one million BTCs over a period of five years.
It remains to be determined whether her bill will receive widespread support within Congress.
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