“There will be a dollar economy as far as the eye can see,” said James Bullard.
James Bullard, the president of the central bank of St. Louis, doesn’t understand why many people rely on cryptocurrencies as a medium of exchange rather than a single currency like the US dollar
In an interview on CNBC’s Squawk Box on Tuesday , Bullard said the problem with payments is not currencies that can be traded electronically, but rather privately issued ones, as is the case with many cryptocurrencies. He spoke of a time in the United States before the Civil War when there was confusion and an aversion to trading in the “equivalent of Bank of America dollars and JPMorgan dollars and Wells Fargo dollars”.
“I think the same thing would happen to Bitcoin here,” Bullard said. “You shouldn’t go over to an inconsistent form of currency where you might pay with Ethereum at Starbucks, maybe with Ripple, maybe with Bitcoin, maybe with a dollar. It doesn’t work that way.”
The governor referred to other privately issued currencies around the world that must adhere to the same restrictions as any other currency issued by a central authority
He said that private currencies cannot maintain a stable value against goods and other currencies. Their future offer is also “not at all clear”.
Shortly before, Bitcoin ( BTC ) hit a new all-time high of over $ 50,000. Although the central bank governor said characterizing the crypto asset as a rival to gold could be “a good way of looking at” Bitcoin, he was largely optimistic about the US dollar only.
“There will be a dollar economy as far as the eye can see. There will also be a dollar economy worldwide, really as far as the eye can see. Whether the gold price rises or falls or the Bitcoin rate rises or falls does not matter really influence. “