Federal Reserve Governor Christopher J. Waller recently reiterated his long-standing view of Bitcoin, likening it to “electronic gold” rather than a conventional financial asset. Speaking during the “Crypto in America” livestream on October 21, 2025, Waller emphasized that Bitcoin lacks intrinsic yield and derives its value primarily from collective belief, much like traditional commodities such as gold.
According to Waller, Bitcoin should be regarded not as a medium of exchange or a payment system, but rather as a store of value — a digital counterpart to gold. “It doesn’t generate income. It doesn’t have underlying cash flows. Its value is purely based on the expectation that someone else will pay more for it in the future,” he explained. In his view, this belief-based valuation mechanism — what he called a “belief equilibrium” — is not unique to Bitcoin but is shared by other commodities historically used to preserve wealth.
Waller made it clear that he sees nothing inherently problematic about this structure. “It has a price, and that price can be sustained simply because people believe it has value. That’s also true for gold, which also lacks fundamental value in the traditional financial sense,” he added. This position aligns with his consistent stance over the years, where he has repeatedly characterized Bitcoin as a non-productive asset that acts more like a collectible or precious metal than a unit of account or means of payment.
The comparison between Bitcoin and gold isn’t novel for Waller. In previous appearances, he has clarified that while many crypto assets may lack staying power or economic function, Bitcoin has consistently stood apart as a vehicle for wealth preservation. “Bitcoin to me is basically electronic gold,” he has stated in the past, reinforcing the notion that BTC’s real utility lies in its ability to serve as a long-term store of value.
This perspective is shared by Federal Reserve Chair Jerome Powell, who in December 2024 described Bitcoin as a speculative asset used “like gold — only digital.” Speaking at the New York Times DealBook Summit, Powell emphasized that Bitcoin competes with gold, not fiat currencies like the U.S. dollar. His comments marked one of the most direct acknowledgments from a Fed Chair that Bitcoin’s primary role is not in everyday transactions, but as a digital commodity with speculative appeal.
Powell has echoed this sentiment in several public remarks over the years, repeatedly calling Bitcoin a speculative store of value. This framing reflects a broader trend within monetary policy circles, where central bankers are increasingly distinguishing between cryptocurrencies designed for transactional purposes — such as stablecoins — and those, like Bitcoin, that serve as passive investment instruments.
Waller’s remarks also arrived at a time when the Federal Reserve is actively engaging with evolving digital asset technologies and considering new models for access to its payment infrastructure. His suggestion that the Fed explore narrower access for innovators may hint at a more crypto-inclusive future in U.S. financial policy — though such developments remain speculative for now.
Meanwhile, some regulatory questions remain unresolved. Fed Governor Michael Barr has voiced concerns that proposed legislation, such as the GENIUS Act, could potentially limit the central bank’s ability to oversee Bitcoin and similar decentralized assets. This tension highlights the growing debate within government institutions over how to balance innovation with regulatory oversight in the crypto space.
At the time of Waller’s speech, Bitcoin was trading at $107,985, a figure that underscores the asset’s continued relevance in global financial markets despite its volatility and lack of traditional fundamentals.
The framing of Bitcoin as “digital gold” also finds support beyond the Federal Reserve. Many institutional investors and hedge funds have incorporated Bitcoin into their portfolios using the same logic — as a hedge against inflation and fiat currency devaluation. These investors often treat Bitcoin as a strategic asset, akin to gold, rather than a day-to-day payment method.
This analogy has important implications for how Bitcoin is regulated, taxed, and integrated into broader financial systems. If Bitcoin is accepted as a store of value rather than a currency, it may fall under different regulatory frameworks, potentially easing its integration into traditional finance.
Moreover, the growing narrative that Bitcoin functions similarly to gold could influence central banks’ future policy decisions regarding digital asset reserves. While no major central bank currently holds Bitcoin as part of its reserves, the evolving view of its role in the global economy may eventually lead to reconsideration.
The perception of Bitcoin as electronic gold also resonates with retail investors, many of whom see it as a way to preserve purchasing power in an era of rising inflation and uncertain monetary policy. This belief has contributed to Bitcoin’s resilience over the years and helps explain its growing adoption even in countries facing economic instability.
Ultimately, Waller and Powell’s statements serve as a significant endorsement of Bitcoin’s role as a long-term store of value, even if they stop short of advocating for its use as a currency. Their views reflect a maturing attitude among central bankers toward crypto, one that acknowledges Bitcoin’s permanence in the financial landscape while still drawing clear lines between it and traditional money.
As Bitcoin continues to solidify its position as a digital alternative to gold, it becomes increasingly important for regulators, financial institutions, and investors to understand and adapt to its unique characteristics. Whether through more nuanced regulation, integration into investment strategies, or broader institutional acceptance, the path forward for Bitcoin seems increasingly defined — not as a transactional currency, but as a belief-based asset class with enduring appeal.