Fed not interested in owning bitcoin, says Powell

Investing.com -- Federal Reserve Chair Jerome Powell confirmed on Wednesday that the U.S. central bank has no intention to be involved in any government initiative to hold significant quantities of bitcoin. This announcement was made at a press conference following the Federal Open Market Committee meeting, where policymakers reduced rates as anticipated, while indicating a less predictable course for monetary policy in the upcoming months.

Powell clarified that the Federal Reserve is not permitted to own bitcoin. He further emphasized that the legal complexities surrounding the holding of bitcoin are matters for Congress to deliberate, but the Federal Reserve is not seeking any alterations to the law.

Powell's comments were in response to the potential for central bank participation in the concept of the government establishing what is referred to as a Strategic Bitcoin Reserve once the President-elect Donald Trump assumes office. Following Powell's remarks, the value of the digital asset, which has experienced a significant rally since the election, declined.

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Source: Investing.com