Fed’s Powell: Cryptocurrencies Are ‘Vehicles for Speculation’

Federal Reserve Chairman Jerome Powell Cryptocurrencies

Cryptocurrencies are primarily for making bets on price increases and have not reached the status of payment mechanisms, Federal Reserve Chairman Jerome Powell said on April 14.

"They’re really vehicles for speculation," Powell told The Economic Club of New York in a virtual interview with David Rubenstein, co-founder of the Carlyle Group (CG). "They’re not really being actively used as payments."

The central bank official also compared cryptocurrencies to gold.

"For thousands of years, human beings have given gold a special value that it doesn’t have", he said. This is a reiteration of comments made by Treasury secretary Janet Yellen, Powell's predecessor at the Fed. In February, Yellen described bitcoin as a "highly speculative asset". She pointed out that it is not "widely use...

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