The volatility of the cryptocurrency is not a big problem only because the trading volumes of digital assets hold a small share in the economy of the country. This was stated by the head of the Federal reserve Bank (FRB) of St. Louis James Bullard during a conference of Consensus 2018 in new York.
Bullard stressed that the nature of cryptocurrency, nothing innovative — the United States has faced a similar situation in the 30-ies of the last century, when 90% of us banknotes were issued in private.
“They are traded at different rates in different places, and it’s not like citizens. Therefore, in the course of the civil war was created by the single currency. And digital money again encourage the population to use non-standardized currency, although the society has refused it before,” he said.
In addition, the fed compared the cryptocurrency transactions of cigarettes, which were used as money of prisoners of war during world war II.
Criticism Bullard has been the primary supply of coins (ICO), driving digital money “as the Wild West.”
“A large number of tokens which courses are constantly changing, can cause a serious problem for users. Therefore, the Federal reserve Bank will not create their own coin and cautions that other market participants”, — he said in his speech.
Along with this, James Bullard called himself a “supporter of technological innovation” and pointed to the prospects of the blockchain technology.
We will remind, in April the member of the Board of governors of the Federal reserve Governor Lael Brainard speak called bitcoin and other cryptocurrencies “extremely volatile”, but made clear that this new asset class does not create a threat to the stability of the American economy.
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