Federal Reserve Bank president says most cryptocurrencies are ‘worthless’

Federal Reserve Bank President James Bullard did not hold back when he aired his sentiments about cryptocurrencies in a recent interview with Yahoo Finance.

Bullard said most of them are worthless while also noting that if they can complete transactions that are difficult to accomplish with conventional currencies, such digital assets can have a purpose and circulate with fiat or government-backed currencies.

Bullard was asked about his views on cryptocurrency and its use cases as well as if he is paying attention to the volatility in crypto markets.

He responded by saying he has few ideas on what he termed as “non-uniformed currency” as well as the experienced exchange rate chaos the past week.

The federal bank big boss said, “One is that currency competition is nothing new. Private currency issuance has been addressed historically in monetary theory,” before airing his sentiments about the subject matter at hand.

Speaking on market volatility

Bullard also said during the interview that the volatility of cryptocurrencies has been apparent in recent days.

He, however, noted that different currencies have volatile exchange rates and it is a standing problem in the international monetary system. It just so happens that it is a much bigger problem for privately issued currencies like digital variants.

The elite banker shared the Federal Reserve is looking at a Fed coin and they are watching the recent volatility exhibited by the crypto space for the past days.

A piece of advice

After saying cryptocurrencies are worthless, Bullard was asked if such presents a financial stability risk.

In answering, he offered a piece of advice, saying he hopes those who are involved in it know the risks, as any investment can go up but it can also go down.

There is a need to balance the risks and rewards in the field of finance and Bullard concluded by noting anyone who enters with eyes wide open probably knows the market is a very volatile area.

 

Image courtesy of Cointelegraph News/YouTube

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