Federal Reserve high-ranking decision maker: cryptocurrency volatile but non-hazardous

Lael Brainard who takes a considerable part in forming the United States Federal Reserve financial policy (she is a member of the governors’ board) has made it clear that the market of cryptocurrencies needs monitoring and investor education due to its extreme volatility. She provided Bitcoin as an example of this anomalous price dynamics when an asset can cost 20,000 in one month and $7000 in the next one without any catastrophic events.

However, the high-ranking manager has also told at the same speech in New York that due to the relative isolation of the cryptocurrency market, it cannot seriously influence the financial stability of classic markets. Cryptocoins are not a part of everyday payments, this option is still exotic and Lael Brainard is aware of this.

Other Federal Reserve members are sharing this concept, as evidenced by the older reports on Bitnewstoday: Jerome Powell, current Fed chairman, has voiced his opinion largely corresponding with the recent statement of Lael Brainard when he was still a nominee for the post. Alan Greenspan, former chief of the Federal Reserve, is not excluding the future widening of cryptocurrency trade if the market decides it’s good.

Image courtesy of REUTERS / Yuri Gripas