Fed Chair Say’s People Don’t Want ‘Non-Uniform Currency’ Like Bitcoin, Says Fed Chairman.
James Bullard, chairman of the Federal Reserve Bank of St. Louis, apparently doesn’t understand why many are turning to cryptocurrency as a medium of exchange instead of a uniform currency like the US dollar.
In an interview with CNBC’s Squawk Box today, Bullard said the problem with making payments is not which currencies can be exchanged electronically, but rather privately issued ones, as is the case with de many crypto-currencies. He referred to a time in the United States before the Civil War when there was confusion and an aversion to trading “the equivalent of Bank of America and JPMorgan and Wells Fargo dollars.”
"I have no reason to doubt the CBO analysis that says you'd lose about 1.4 million jobs," says James Bullard on Pres. Biden's proposed $15 minimum wage proposal. "I'd like the debate to be a local debate in different parts of the country and adjust to different labor markets." pic.twitter.com/PZyvNDHb8r
— Squawk Box (@SquawkCNBC) February 16, 2021
“I think the same would happen with Bitcoin here,” Bullard said. “You don’t want to go to a non-uniform currency where you walk into Starbucks and maybe you’ll pay with Ethereum, maybe you’ll pay with Ripple, maybe you’ll pay with Bitcoin, maybe pay yourself with a dollar – that’s not the way we do it.
The Fed chairman referred to other private currencies around the world that are required to meet the same restrictions as any currency issued by a central authority. He said private currencies are unable to maintain a stable value against commodities and other currencies, and their future supply is not “at all clear.
Bullard’s comments came as Bitcoin (BTC) hit a new record price of over $ 50,000 this morning. Although the Fed chairman has said that calling the crypto asset a rival to gold “might be a good way to think about” Bitcoin, he largely reserved his bullish remarks for the US dollar.
