St. Louis Fed Chief James Bullard Agrees Crypto Is Disrupting Economy

Central bankers have a lot to say about bitcoin. Federal Reserve Bank of St. Louis President and CEO James Bullard acknowledges that cryptocurrencies are a disruptive force to the economy. Like his boss, Fed Chairman Jerome Powell, Bullard also appears to worry that cryptocurrencies are a menace to the financial system for a couple of reasons. He believes that crypto paves the way for crime, and he is focused on the fact that bitcoin is accompanied by high volatility. Bullard stated:

“Cryptocurrencies may unwittingly be pushing in the wrong direction in trying to solve an important social problem, which is how best to facilitate market-based exchange.”

Bullard issues a reminder that cryptocurrencies aren’t the first competition that fiat money has seen, pointing to the example of cigarettes which “became a currency among POWs during World War II.” He said:

“I want to view cryptocurrencies of various types as new entrants into the ongoing global currency competition.”

And while he cites research that implies that “public and private currencies can compete and coexist,” he doesn’t seem to think that digital currencies will last the test of time.

“Cryptocurrencies are creating drift toward a non-uniform currency in the U.S., a state of affairs that has existed historically but was disliked and eventually replaced.”

He doesn’t expect that consumers and businesses will support it, but the crypto community is convinced that mainstream adoption is inevitable.

Bitcoin remains a highly volatile asset, and Bullard seems to believe that it will stay that way forever and therefore payments are not a suitable use case:

“Currencies have to be reliable and hold their value. This is probably why government backing has been important historically, combined with a stable monetary policy that promotes stability of the currency.”

This has been a week of crypto backlash in the U.S., including lawmakers such as Brad Sherman, who went so far as to liken bitcoin to the terrorist attacks that took place in this nation on 9/11.

Meanwhile, CoinShares Chief Strategy Officer Meltem Demirors testified before the House this week and made the media rounds afterward. Her message was that cryptocurrencies are here to stay and bitcoin is not Libra.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

previous arrow
next arrow

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

What Is ZetaChain And How Does It Operate?
What Is ZetaChain And How Does It Operate?
September 27, 2022
What is Terra Classic (LUNC)? How Does it Work?
September 26, 2022
What Is A Public Presale In Crypto?
What Is A Public Presale In Crypto?
September 22, 2022
How Many Cryptocurrencies and NFT Collections are there in 2022?
September 21, 2022
What Are The Benefits Of Cryptocurrency?
What Are The Benefits Of Cryptocurrency?
September 20, 2022

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin19,432 0.09 % 2.65 % 4.81 %
Ethereum1,336.5 0.16 % 3.20 % 6.68 %
Tether1.000 0.03 % 0.00 % 0.06 %
USD Coin1.000 0.44 % 0.25 % 0.18 %
BNB281.36 0.31 % 3.45 % 6.32 %
Binance USD1.000 0.15 % 0.14 % 0.18 %
XRP0.4065 4.21 % 4.96 % 1.94 %
Cardano0.4360 0.07 % 1.11 % 1.35 %
Solana42.12 0.56 % 2.22 % 3.81 %
Dogecoin0.06035 0.04 % 1.07 % 4.97 %

Bitcoin (BTC) $ 19,441.20
Ethereum (ETH) $ 1,336.97
Tether (USDT) $ 1.00
USD Coin (USDC) $ 0.999954
BNB (BNB) $ 280.52
Binance USD (BUSD) $ 1.00
XRP (XRP) $ 0.407358
Cardano (ADA) $ 0.436109
Solana (SOL) $ 33.64
Dogecoin (DOGE) $ 0.060381