Mary Daly, President of the San Francisco Federal Reserve Bank, stated that cryptocurrency should be regarded as an independent asset class. Daly emphasized that cryptocurrencies should not be equated with gold and that they have not yet achieved the status of “money.”
The Distinction Between Cryptocurrencies and Gold
Speaking on a podcast, Daly said:
“Cryptocurrencies are complex. We need to understand what they are and define them accordingly. These assets could be a currency, a means of transferring value, or function more like stocks. They can even have storage capabilities or occasionally lose value.”
While Daly acknowledged that cryptocurrencies sometimes exhibit gold-like properties, she added, “I don’t think cryptocurrencies are equivalent to gold.”
Mary Daly’s Views Differ From Chair Powell’s
Daly’s perspective contrasts with earlier statements by Federal Reserve Chair Jerome Powell. At the New York Times DealBook conference in early December, Powell referred to Bitcoin as:
“People see Bitcoin as a speculative asset. It’s like gold, but virtual and digital. It’s not used as a payment method or a store of value. It’s quite volatile. It’s not a competitor to the dollar, but rather a competitor to gold.”
While largely supporting Powell’s views, Daly argues that cryptocurrencies are currently unsuitable to function as a currency. She believes that for cryptocurrencies to serve as a proper currency, their value must grow alongside the economy.
Bitcoin and Rising Cryptocurrency Investments
Daly stated that Cryptocurrency require more time to achieve currency status. Meanwhile, market enthusiasm for digital assets continues to grow. Since November, Bitcoin prices have seen a significant surge. As of December 4, Bitcoin surpassed the $100,000 threshold, bolstering investor confidence in digital assets.
Additionally, stocks of crypto-related companies like Coinbase (COIN) and Robinhood (HOOD) have seen substantial gains in 2024, increasing by 45% and 204%, respectively. Interest in cryptocurrencies isn’t limited to retail investors. Traditional financial institutions are also expanding their Bitcoin investments. For example, a pension fund in Wisconsin purchased $1.6 billion worth of Bitcoin funds in 2024.
Trump Administration and Cryptocurrency Policies
The new Trump administration has taken notable steps regarding cryptocurrency policies. Most significantly, venture capitalist David Sacks has been appointed as the “crypto czar,” highlighting the administration’s focus on this space. Under Sacks’ leadership, a major initiative aims to establish the U.S. as a leader in Bitcoin mining and blockchain technology.
Breaking News: Donald Trump-Backed Project Partners With This Altcoin!
Benchmark Company analyst Mark Palmer remarked, “Institutional adoption of Bitcoin is crucial. We estimate that Bitcoin’s price could reach $225,000 by the end of 2026.” Despite cautious approaches from Mary Daly and Jerome Powell, the cryptocurrency market and its increasing investment appeal continue to grow, playing a significant role in the economy. For current Bitcoin price predictions, visit the report from Kriptokoin.com.