ST. LOUIS — As the value of Bitcoin topped $50,000 for the primary time, St. Louis Fed President Jim Bullard mentioned the cryptocurrency poses no risk to the U.S. greenback within the international economic system.
“I simply suppose for Fed coverage, it will be a greenback economic system so far as the attention can see,” Bullard said in an interview with CNBC Tuesday. “A greenback international economic system, actually, so far as the attention can see — and whether or not the gold value goes up or down, or the Bitcoin value goes up or down, would not actually have an effect on that.”
One purpose, he mentioned, is that almost all traders desire a “protected haven” and “steady retailer of worth,” which Bitcoin would not have but.
Bullard mentioned the proliferation of privately issued, competing currencies reminiscent of Bitcoin, might be problematic.
“You do not need to go to a non-uniform forex the place you are strolling into Starbucks and possibly you will pay with Ethereum, possibly you will pay with Ripple, possibly you will pay with Bitcoin, possibly you will pay with a greenback. That is not the manner we do that. We have now a uniform forex.”
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