Fed Chair Jerome Powell Says, 'We're Not Allowed to Own Bitcoin' Amid Trump’s Push for Bitcoin Strategic Reserve

 Federal Reserve Chair Jerome Powell recently addressed the growing buzz surrounding Bitcoin and the possibility of its inclusion in U.S. financial strategies, specifically responding to former President Donald Trump's push for a Bitcoin strategic reserve. In a statement that caught the attention of market analysts and digital currency enthusiasts, Powell asserted, "We're not allowed to own Bitcoin."

Powell's comments come at a time when cryptocurrency advocates are pushing for greater integration of digital currencies into mainstream finance. Trump's proposal to create a Bitcoin reserve as a hedge against economic instability has raised questions about the potential for government involvement in the cryptocurrency market. The former president has long been an advocate for Bitcoin, often calling it a "better form of money" in various public statements.

While Powell emphasized that the Federal Reserve, as a central banking institution, is prohibited from holding Bitcoin, he reiterated that the Fed remains closely monitoring the evolution of digital currencies. He expressed concerns about the volatility and lack of regulation surrounding Bitcoin and other cryptocurrencies, which remain a significant hurdle for their mainstream adoption.

Despite Powell's cautious stance, the conversation around Bitcoin continues to grow. Industry leaders and policymakers are debating whether a shift in regulatory frameworks could eventually allow for broader institutional involvement in the digital currency market. As Trump pushes forward with his proposal, it remains unclear how the government will navigate the challenges posed by digital currencies in the coming years.

Powell's comments also underscore the broader dilemma faced by central banks worldwide as they balance innovation in the financial sector with the need for stability and regulation. As the debate around Bitcoin continues to intensify, all eyes will remain on the Federal Reserve's future actions in response to the ever-evolving landscape of digital currencies.