According to ShibDaily, Federal Reserve Chair Jerome Powell has reiterated that the central bank is not authorized to own Bitcoin, despite a proposal from Senator Cynthia Lummis suggesting otherwise. During a press briefing after the year's final Federal Open Market Committee (FOMC) meeting, Powell emphasized that the Federal Reserve has no plans to hold Bitcoin as part of its reserves and does not intend to seek legislative changes to allow such actions. This stance comes amid growing interest in cryptocurrencies as President-elect Donald Trump prepares to take office.
Powell's statements highlight the central bank's reluctance to integrate Bitcoin into its monetary policy framework, maintaining a focus on preserving the dollar's dominance in global markets. In contrast, some members of the incoming Trump administration are exploring alternative reserve assets. Experts suggest that creating a Strategic Bitcoin Reserve could lead to tensions between regulatory agencies and the executive branch, complicating efforts to incorporate Bitcoin into federal financial systems.
Senator Lummis, however, has proposed a plan to grant the Federal Reserve the authority to hold Bitcoin. In an interview with Yahoo Finance, she outlined her proposal for the U.S. government to acquire 200,000 Bitcoin annually over five years, ultimately amassing one million Bitcoin. The plan includes holding the Bitcoin for at least 20 years, with projections suggesting the reserve could appreciate to $16 trillion. Lummis believes a Bitcoin reserve could strengthen the U.S. dollar and address challenges related to the country's large debt.
Lummis expressed enthusiasm about working with President-elect Trump's pick for Crypto Czar, David Sacks, on comprehensive digital asset legislation and her proposed Bitcoin reserve. She described the upcoming administration as potentially the most pro-digital asset in history. This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making investment decisions.
