James Bullard, St Louis Fed: currency competition is far from good
James Bullard has compared the current volatility of the cryptocurrency market to the Venezuelan bolivar, one of the most unstable fiat currencies today. He has also reminded about the 1830s (almost 200 years ago) when the United States had much more kinds of banknotes in free circulation. And this was not the time one would like to live in, Bullard implied, as there was a complete mix-up of exchange rates and their sudden change.
The St Louis Federal Reserve Bank leader does not have a clear view on whether the government should regulate the process of cryptocurrency competition. As he said, although this has been the case for centuries, maybe things will be different in the future.
One of researchers at Goldman Sachs probably has the answer to the concerns of James Bullard. According to the report composed by Steven Strongin, some altcoins will simply not pass the test of time. He thinks that if several digital assets acts as one, some of them are obviously overestimated.
The FRB of St Louis has already appeared on the pages of Bitnewstoday: its official site article is noteworthy for its acknowledgement that the United States dollar does not have intrinsic value.
Image courtesy of Brian Snyder / Reuters
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