The President of the Federal Reserve Bank of St.Louis, James Bullard, has shared his views on the future of bitcoin. He is confident that cryptocurrencies pose no threat to the US dollar.
Referring to the unpopularity of various bank-issued versions of the dollar, Bullard predicts the same fate will happen to bitcoin.
Fed President St. Louis Says Bitcoin’s Popularity Doesn’t Threaten the Dollar
James Bullard said in an interview with CNBC last week that increasing interest in bitcoin, coupled with its all-time high price, poses no threat to the US dollar as the world’s reserve currency. Bullard is an economist who has been president of the Federal Reserve Bank of St. Louis since 2008.
“I just think for Fed policy, it’s going to be a dollar economy as far as the eye can see and whether the price of gold goes up or down, or the price of bitcoin goes up or down, doesn’t really affect that,” Fed president St. Louis explained.
Bullard expressed concern about widespread financial transactions using various cryptocurrencies that are not issued by the government. “The dollar can already be traded electronically, so I’m not sure that’s the case here. The problem is the private currency,” he stressed.
He then explained that at that time commercial banks issued their own currency. He likens the situation to financial institutions – such as Bank of America, JPMorgan, and Wells Fargo – all having different dollar brands, explaining:
They all trade and they trade at different discounts from each other, and people don’t like it at all. I think the same will happen with bitcoin here.