St. Louis Federal Reserve Bank Head: Cryptocurrencies Still Have Lots of Problems
May 16, 2018
Exchange rate instability is the primary obstacle for global acceptance of cryptocurrencies, as said President at St. Louis Fed President James Bullard.
The Bnak’s governor noted, lack of conformity attracts speculators as their activity on the market grows. Bullard believes, this alienates private investors and companies from the market.
“The exchange rate problem is a big deal, because you don't know how they're going to trade against each other. That happens even with big-time currencies like the yen and the dollar”, he told in the interview to CNBC.
St. Louis Fed President added, the Bank is unlikely to create its own cryptocurrency despite this was rumored last year. He stressed it, cryptocurrencies are of no threat for dollar and voiced confidence that governors of the world’s central banks monitor the situation in this industry:
“The drift to a nonuniform currency could become a serious issue for the U.S. if cryptocurrencies take up a large volume of trade. You could imagine going into a story and now you have 10 different ways or 100 different ways that you can pay. That is exactly what people have not liked historically. ... They want a uniform thing — a dollar is a dollar.”