The president of the United States Federal Reserve, Jerome Powell, declared during the afternoon of this Wednesday, December 18, that the institution he represents cannot hold Bitcoin (BTC) in its reserves.
In a press conference that celebrated After the meeting of the Federal Open Market Committee (FOMC), the official explained that, according to the Federal Reserve Law, It is not possible for the organization to acquire the digital currency.
“We are not allowed to own bitcoin. The Federal Reserve Law “It says what we can own” and Cryptocurrency is not among the permitted assets. He also indicated that the only way to add BTC to the central bank’s reserves is by modifying the law.
This refers to the fact that the aforementioned law includes rules that “restrict the Reserve’s open market investments from being subject to the obligations of the US government or to instruments guaranteed by the federal government or its agencies.”
Powell’s statement pushed down the price of bitcoin in the markets. The digital asset went from a valuation of $105,000 per unit to $100,600 according to data from Coinmarketcap.
The price of bitcoin suffered a decline after Powell’s statements. Source: Coinmarketcap
Consequently, as Powell indicates, this law would have to be amended to allow the Federal Reserve to buy bitcoin.
The official opined, in that sense, that I would not seek to change the law. In any case, this is an issue that must be addressed in Congress and that must be resolved once Donald Trump assumes the presidency next January.
Powell’s statements are made in the midst of the debate taking place in the United States for the creation of reserves in bitcoin. President-elect Donald Trump has reiterated that he will aim for bitcoin and cryptocurrencies in general to have a more favorable regulation as reported by CriptoNoticias, which would include a national reserve in BTC.
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Journalist Rafael Gómez Torres contributed to the preparation and editing of this report.
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