- St. James Bullard, President of the Federal Reserve Bank of Louis, explained that many people “don’t understand” that they see cryptocurrency as a medium of exchange rather than a single currency like the US dollar.
St. James Bullard, President of the Federal Reserve Bank of Louis, explained that many people “don’t understand” that they see cryptocurrency as a medium of exchange rather than a single currency like the US dollar.
“Bitcoin is causing confusion”
In an interview with CNBC’s Squawk Box today, Bullard said that the problem of making payments is not caused by currencies that can be bought and sold electronically, but by privately issued coins, as is the case with many cryptocurrencies. The President referred to the period when trading in “Bank of America dollars, JPMorgan dollars, and Wells Fargo dollars equivalent” in the United States before the Civil War.
Bullard spoke on the subject as follows:
“I think the same goes for Bitcoin. When you go to Starbucks, you don’t want to trade with a non-uniform currency. Maybe you pay in Ethereum, maybe you pay with Ripple, maybe you pay in Bitcoin, maybe you pay in dollars. But we don’t do that. ”
“Future supplies of cryptocurrencies are not clear”
The Fed Chair referred to other currencies that are privately issued globally, which must comply with the same restrictions as any currency issued by a central authority. He said private currencies cannot provide stable value against goods and other currencies, and their future supplies are “not at all clear.”
Bullard’s comments came when Bitcoin (BTC) hit an all-time high price of $ 50,000 this morning. The President of the Fed largely hid the bullish promise for the US dollar, despite saying that labeling the crypto asset as a gold rival could “be a good way to think” Bitcoin.
“It will be a dollar economy as far as the eye can see and indeed a dollar global economy as far as the eye can see. The rise or fall of the gold price or the rise or fall of the Bitcoin price will not affect this. “