The post Fed Official Comments on Bitcoin Amid Growing Bitcoin Reserve Talks appeared on BitcoinEthereumNews.com.

In a recent development, a Fed official has shared his take on Bitcoin, amidst growing discussions around the potential establishment of a strategic Bitcoin reserve in the US. In a recent X post, Austan Goolsbee, the president of the Federal Reserve Bank of Chicago, has shared that the Fed is legally limited about what it can actually put on its balance sheet.  GOOLSBEE: ASKED ABOUT #BITCOIN RESERVE, SAYS FED IS LEGALLY LIMITED ABOUT WHAT IT CAN PUT ON ITS BALANCE SHEET — *Walter Bloomberg (@DeItaone) January 31, 2025 Notably, Chair Jerome Powell previously mentioned that the Federal Reserve is legally barred from holding Bitcoin under the Federal Reserve Act and that the institution has no interest in changing the law. In 2021, he also stated that Bitcoin isn’t a reliable store of value because of its high volatility. In a recent press conference, Powell said that banks could offer cryptocurrency custody services now that the SEC dropped the controversial SAB-121 guidance. The crypto community reacted positively to the statement, causing Bitcoin to rise. Several States Working Towards BTC Reserve Last month, Powell described Bitcoin as a digital version of gold, aligning with views from its strong supporters. As for a Bitcoin reserve, that idea now seems less likely, with the chances of it happening by the end of April dropping to just 16%. However, most expect the reserve to be established sometime later this year. Besides, several states like Texas, Florida, and Ohio are working on creating local Bitcoin reserves, although it’s unclear about how many will succeed. Cynthia Lummis of Wyoming, who proposed last year that the U.S. Treasury buy Bitcoin, recently said that establishing the reserve will be her top priority as the head of a new Senate subcommittee on digital assets. Concerns Over Bitcoin’s Security, Liquidity There…

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Filed under: News - @ February 1, 2025 10:27 am