The head of the Federal reserve Bank of St. Louis , James Bullard (James Bullard) believes that the fascination with wall street digital currencies could lead to chaos in some segments of the U.S. economy, if banks and companies will begin to issue its own cryptocurrency.
According to Ballard, with a similar problem the US faced in the 30-ies of the 19th century, when 90% of us banknotes were issued in private. Then the Federal government has consolidated all funds in U.S. dollars. And cryptocurrency, solving important social problems, now again encourage the population to use non-standardized currency, from which the system has already been refused before.
“People want predictability. The dollar was a dollar…
…Currency must be reliable and have a (real) value. Therefore, their support by the government in conjunction with stable monetary a policy that gives stability and the currency has gained importance in the course of history,” said Bullard at the international conference on cryptocurrency and blockchain technology Consensus-2018.
Describing himself as a supporter of technological innovation for economic development, as well as flattering describing the potential of the blockchain technology for this sector, Ballard criticised the ICO for what they can bring to the state “the Wild West of digital money”, when users have to keep the different tokens and puzzle over which of cryptocurrency to conduct routine operations. If there are more than 1800 cryptocurrency and every minute of their exchange rate against each other in the local market, this may pose a problem, he said. By studying the subject, the FBI is not going to create its bitcoin and warns against this other market participants.
We will remind, the head of the Federal reserve Bank of Philadelphia Patrick Harker believes that bitcoin and other cryptocurrencies are unlikely to weaken the influence of Federal reserve on the US economy. However, senior Vice President, Federal reserve Bank of Boston Jim Cunha (Cunha Jim) believe that technology is a distributed registry (DLT) can “radically change” many areas of financial services. And analysts Federal reserve Bank of San Francisco, studying the topic of cryptocurrencies, recently came to the conclusion that launching a bitcoin futures in December last year led to a drop in the rate of the main cryptocurrency.