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Federal Reserve Chairman Jerome Powell discusses BTC strategic reserves in the United States!
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Jerome Powell, the Chairman of the Federal Reserve, addressed questions about BTC (Bitcoin) in his statement.
During the press conference, when asked about the strategic BTC reserve, Jerome Powell said that they do not allow owning BTC and do not support changing the law.
Strategic reserves are critical resource inventories that can be released in times of crisis or supply disruption. The most famous example is the US Strategic Petroleum Reserve established by Congress in 1975 after the 1973-74 Arab oil embargo led to an economic recession in the US, which is the world's largest emergency crude oil source.
Leaders use these reserves to stabilize the oil market during wartime or hurricanes hitting the oil infrastructure in the Gulf of Mexico.
Analysts and legal experts have differing opinions on whether Trump can use executive power to establish reserves and whether a congressional resolution is needed. Some believe that Trump can establish reserves through executive orders, which can be used by the US Treasury to buy or sell foreign currency, as well as for holding a foreign exchange stabilization fund for BTC.
Reserves can include BTC obtained by the government from criminals. According to data, the amount is about $2 billion, worth approximately 200,000 tokens.
In a speech in July, Trump announced the BTC reserve plan, saying that this may be the starting point of the inventory, but it is not clear what legal procedures are needed to move them out of the Department of Justice.
Trump did not indicate whether the government will increase its inventory by purchasing more BTC. To do this, the government may need to borrow, but some supporters of BTC reserves say that the United States can sell some of its gold reserves and use the proceeds to buy BTC.