C. Edward Kelso: Federal Reserve Pres: People Want Dollar, Not Volatile Crypto

volatility us-dollar st-louis-federal-reserve-president seema-mody news new-york-city n-featured james-bullard federal-reserve fed-coin fabian-schar cryptocurrency consensus cnbc aleksander-berentsen

Federal Reserve Pres: People Want Dollar, Not Volatile Crypto

St. Louis Federal Reserve President, James Bullard, was recently interviewed at this year’s Consensus conference in New York City. That a top US economic policy maker was in attendance is victory enough; however, he was asked his opinions on cryptocurrency going forward by CNBC Global Markets Reporter Seema Mody. He explained he found the phenomenon “interesting,” and how more cryptos being issued all time necessitates keeping an “eye” on them. Mr. Bullard also compared the use case for cryptocurrencies with that of the dollar, and whether the former posed a threat to the latter.  

Also read: Bitpay Enables Bitcoin Cash (BCH) and Bitcoin Core (BTC) for Tax Payments

Federal Reserve President Attends Crypto Conference

Federal Reserve President, James Bullard, gave a presentation at this year’s giant Consensus conference in New York City. Reread that sentence. A sitting Fed policy maker thought it important enough to attend a crypto soiree. That’s news enough. But more importantly, President Bullard gave a presentation on the government’s current thinking about cryptocurrency.

In his talk, he acknowledged crypto is facilitating trade that might otherwise not occur. He couldn’t help himself by mentioning illegal activity (and we all know fiat currencies are never used in illegal activity), but he did describe decentralized money’s lean toward frictionless transactions (especially with regard to costs/fees) as being an advancement.

Federal Reserve Pres: People Want Dollar, Not Volatile Crypto
Mr. Bullard and Ms. Mody

The Fed policy maker reserved the bulk of his comments, both in the presentation and during a post-game interview with CNBC, to talk about the problems in crypto as he sees them. One issue is simply the number of currencies being offered. The 12th St. Louis Fed President feels this over complicates matters, especially with regard to exchange rates and volatility.

Asked if cryptocurrencies pose a threat to the dollar, Mr. Bullard, 56, answered he didn’t think so. Global Markets Reporter Seema Mody, who is covering Consensus for CNBC this year, quickly followed up with a “but it could be?” The Fed President was noncommittal, choosing instead to shrug and give the pat answer about no one really knowing what the future holds. He emphasized how since its creation the US dollar has vanquished nearly all currency competition due to its being backed by the world’s strongest economy. It’s abundantly clear, Mr. Bullard suggested, people want the dollar and not crypto … at least at the moment.

Fed Coin on the Horizon?

Ms. Mody pressed Mr. Bullard about his presence at the conference, asking if this was a hint of things to come with regard to a future coin birthed by the Fed, a Fed Coin? Interestingly he didn’t dismiss the idea outwardly, and instead said they’d for sure look at the possibility, as the Fed does with many different types of financial innovations. He also assured there wasn’t any plan being hatched at the moment, no imminent Fed Coin coming. Mr. Bullard also wondered aloud what the gains would be by creating such a coin. He smiled subtly, assuring he’s keeping an “open mind.”

Federal Reserve Pres: People Want Dollar, Not Volatile Crypto

His comments seem to be less strident than statements issued by the St. Louis Fed on the very subject not even one month ago. “The St. Louis Federal Reserve has published an essay critically evaluating the notion of cryptocurrencies that are issued by central banks,” we detailed. “The article is highly dismissive in presenting what it describes as ‘the non-case for central bank cryptocurrencies,’ concluding that ‘a central bank will not issue cryptocurrencies in the sense of a truly decentralized and permissionless asset that allows users to remain anonymous.’”

A rather curious fact about the St. Louis Fed, one of twelve jurisdictions in the Federal Reserve system (the 8th district serves Indiana, Kentucky, Missouri, Illinois, Tennessee, Louisiana, Mississippi, Arkansas), is how it has recently become very chatty about crypto. As these pages reported back at the beginning of this year, “Aleksander Berentsen and Fabian Schär of the Federal Reserve Bank of St. Louis have recently published an article that emphasizes many of the benefits of cryptocurrencies. The article states that ‘cryptoassets are well suited to become an important asset class,’ in addition to offering praise regarding a number of the major applications associated with cryptocurrencies.”

Do you think a Fed president attending a crypto conference is meaningful? Let us know your thoughts in the comments below.

Images via Shutterstock, Pixabay, Twitter.

Need to calculate your bitcoin holdings? Check our tools section.

The post Federal Reserve Pres: People Want Dollar, Not Volatile Crypto appeared first on Bitcoin News.

Original article was created by: C. Edward Kelso at news.bitcoin.com

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency or ICO.

Interested in Cryptocurrencies and ICO's?

Follow our telegram channel for daily cryptomarket reports!

Join @cointrends

Related Articles

pubDate Newsline
52 minutes ago A world where cryptoassets are securities
4 hours ago Japan Roundup: Public Companies Unveil New Mining Plan, Exchange, Token Fund
4 hours ago Japan Roundup: Public Companies Unveil New Mining Plan, Exchange, Token Fund
8 hours ago Three Hackers Held in China Over $87 million Crypto Theft
8 hours ago Three Hackers Held in China Over $87 million Crypto Theft
21 hours ago The Weekly: McAfee’s Doomed Wallet, Altcoin Panic, Binance Launches Fiat-to-Crypto
3 days ago Bitcoin Not Dead, Again: Washington Post Gets Schooled
2 weeks ago PR: Nexty Platform – a Breakthrough for E-Commerce and Retails
1 week ago Consensus: ARK is going to Singapore
2 weeks ago Student Faces Charges for Stealing $5 Million in Crypto via “SIM Jacking”
3 weeks ago Arrington XRP Capital Owns More BTC Than Ripple
2 months ago CNBC Shows Bitcoin Cash (BCH) Love, Predicts Mooning
1 month ago Bitcoin Skeptic Peter Schiff to Joe Rogan: BTC Will Plummet, Voorhees Debate Rigged
1 month ago Shapeshift CEO Defeats Peter Schiff in Bitcoin Debate
1 month ago Wendy McElroy: Does Your Money Serve the State or You?
1 month ago Global Data Report: Cryptocurrencies are Expensive, Slow, Unspendable, Cannot Scale
1 month ago Meet the Liberty Advisor Helping the Crypto-Rich Avoid Capital Gains
1 month ago Red Flag Waved in Tether’s Relationship with Kraken Exchange
1 month ago US Federal Reserve Launches Cryptocurrency Index
3 months ago St. Louis Fed President James Bullard has Mixed Reviews for Cryptocurrencies
7 months ago St. Louis Federal Reserve Reps in Favor of Cryptocurrencies
7 months ago St. Louis Federal Reserve Reps in Favor of Cryptocurrencies

Stay on top of Altcoins and ICO trends.

Subscribe to our free Weekly Cryptomarket report

Delivered once a week, strongly to your inbox.

Subscribe to our mailing list
August 20, 2018

Japan Roundup: Public Companies Unveil New Mining Plan, Exchange, Token Fund

Three Japanese public companies have individually made announcements regarding their cryptocurrency operations. Forside has grown its mining operation with a plan to sell 7nm bitcoin mining rigs. Farsteps is planning a Singapore exchange launch. Meanwhile, Line Corp, the operator of...

From: Kevin Helms

Second Hand Rigs Are Dumped as the Solo Mining Dream Dies

In the summer of 2017, rising cryptocurrency prices led to a run on high performance graphics cards. Coveted cards with a high hashrate were snapped up like proverbial hot cakes, leaving gamers, scientific researchers, and anyone else who relied on flagship GPUs priced out as the cryptocurrency...

From: Kai Sedgwick
August 19, 2018

Three Hackers Held in China Over $87 million Crypto Theft

Three suspects have been detained by Chinese police in connection with an alleged cryptocurrency theft. The supposed hackers stole bitcoin and other digital assets worth an estimated $87 million USD. Authorities say this is the biggest heist of this type in the People’s Republic so far. Also...

From: Lubomir Tassev

SHA-256 Mining Hashrate Climbs Significantly in One Year

Over the last year, SHA-256 mining, the process that’s used to find blocks on both the Bitcoin Cash (BCH) and Bitcoin Core (BTC) networks, alongside a slew of other cryptocurrencies, has grown exponentially. Digital asset trading markets have been in a slump over the last eight months of 2018,...

From: Jamie Redman

India Bitconnect Head Arrested

Alleged India Bitconnect head, Divyesh Darji, was arrested this week at a airport in Delhi as he arrived from Dubai. He and conspirators are accused of bilking millions of dollars (Rs 88,000 crore) from Indian investors seeking to find financial refuge during the government’s demonetization...

From: C. Edward Kelso

44% of American Executives Think “Blockchain Is Overhyped”, Deloitte Survey Finds

New indicators point to corporate executives starting to wisen up to the notion that so-called blockchain technology is some kind of cure-all drug for their industries that they can just extract from Bitcoin and drop the cryptocurrency behind. The latest example of this is a recent survey by...

From: Avi Mizrahi
Upcoming ICO's
This week overview
Token Name Starts
RoBust Defense Token (RBDT) logo RoBust Defense Token (RBDT) Today
Rubius (RUBY) logo Rubius (RUBY) 1 days
Cryptocurrency rates
*Last hour average price&change
Coin Name Price Hour
Bitcoin logo BTC $6484.62553984 -0.14%
Ethereum logo ETH $301.395542734 0.59%
Ripple logo XRP $0.3425627987 0.3%
Bitcoin Cash logo BCH $566.15896452 0.36%
EOS logo EOS $5.2502430186 0.32%
Stellar logo XLM $0.2295310722 -0.11%
Litecoin logo LTC $57.6344392947 -0.05%
Tether logo USDT $1.0033344152 -0.09%
Cardano logo ADA $0.1007863595 0.03%
Monero logo XMR $99.8271185446 -0.21%
IOTA logo IOT $0.5347635733 0.78%
Tronix logo TRX $0.0220756582 -0.13%