St. Louis Fed Chief: Bitcoin Not Yet A Threat To The U.S. Dollar

Federal Reserve Bank

Federal Reserve Bank of St. Louis president James Bullard, spoke about the good aspects of cryptocurrency in a “CNBC” interview at the Consensus 2018 conference in New York.

He stated that crypto is “facilitating the trade that would not otherwise occur. Some of that’s illegal, but some of that is avoiding costs that would otherwise be there.”

When asked if Bitcoin is a threat to the U.S. dollar, Bullard said “I don’t think so at this point.” He expressed uncertainty whether Bitcoin could reach that point. “My idea is that there’s a lot of currency competition going on right now.”

He further explained:

“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.”

Bullard was vocal in his belief in blockchain. “We think blockchain technology is very interesting [..] we want to be very engaged and thoughtful as this proceeds.”

On the question if Federal Reserve Bank of St. Louis was considering its own crypto coin, 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.”

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