“Bitcoin Could Emerge as a ‘Threat’ To US Dollar In Future”-St. Louis Fed Chief Reveals
One of the top US policy maker, who made most of the positive remarks about Bitcoin, has also come out reveal that Bitcoin could be a potential “threat” to the US dollar.
He made this known during an interview with CNBC on Monday, May 14.
St. Louis Fed president James Bullard, made a statement while discussing on the sidelines of the Consensus 2018 conference in New York.
He was able to identify positive aspects of cryptocurrency, namely revolving around cutting costs in trade.
In his statement, he said;
“Crypto is facilitating trade that would not otherwise occur. Some of that’s illegal, but some of that is avoiding costs that would otherwise be there.”
When Bullard, was asked if Bitcoin was a potential threat to the US dollar, he said;
“I don’t think so at this point […]. We don’t know how the future’s going to unfold.”
“My idea is that there’s a lot of currency competition going on right now. The dollar has been the winner historically because it’s backed by the largest economy and a relatively stable policy in terms of low inflation and that’s going to be tough to beat. But a lot of people here want to beat it.”
When talked about blockchain, Bullard, said;
“we think blockchain technology is very interesting [..] we want to be very engaged and thoughtful as this proceeds.”
Bullard, was also confronted with a question of whether or not the Fed was considering issuing its own cryptocurrency, in response to this, he said;
“we can certainly look at that as a possibility. And there are different parts of the Fed that look at all kinds of applications of blockchain technology. But I wouldn’t say there’s any plan at this point.”