By Michael S. Derby
NEW YORK (Reuters) – Federal Reserve Chair Jerome Powell said on Wednesday that the U.S. central bank has no desire to be involved in any government effort to hold large amounts of bitcoin.
“We’re not allowed to own bitcoin,” Powell said at a press conference following the latest Federal Open Market Committee meeting, where policymakers cut rates as expected while signaling a less certain path for monetary policy in the months ahead.
In terms of the legal issues around holding bitcoin, “that’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed,” Powell said.
The Fed leader was addressing the prospect of central bank involvement in the idea of the government building a so-called Strategic Bitcoin Reserve once President-elect Donald Trump takes office. The Fed leader’s comments pushed the value of the asset, which has rallied sharply since the election, down.
(Reporting by Michael S. Derby; Editing by Andrea Ricci)