Jim Bullard, President of the St. Louis Federal Reserve, has dismissed the value proposition of Bitcoin (BTC) based on some of the oft-quoted advantages claimed by BTC proponents.
- Speaking to CNBC on Tuesday, Bullard remarked that the Federal Reserve viewed Bitcoin as more of a rival to gold than an actual currency.
- According to Bullard, “For Fed policy, it is going to be a dollar economy and a dollar global economy as far as the eye can see.”
- For Bullard, the primacy of the U.S. dollar is not dependent on Bitcoin or gold, experiencing significant changes in price action.
- The St. Louis Fed President also remarked that Bitcoin was only one of the emerging digital currencies in the market.
- According to Bullard, a non-uniform currency regime is not desirable, arguing that people are already faced with a multitude of options when transacting with virtual currencies.
- Bullard also took shots at the apparent volatility of Bitcoin, stating that a currency should exhibit some stability to other currencies as well as goods and services.
- As part of his dismissal of BTC, Bullard also compared the largest crypto by market capitalization to ‘faux dollars’ created by U.S. banks during the American Civil War.
- While the likes of Bullard might not subscribe to Bitcoin as currency, major firms like Tesla are already moving towards accepting the cryptocurrency as a payment option.
- Indeed, the electronic vehicle giant recently added $1.5 billion worth of Bitcoin to its balance sheet.
- Bitcoin recently crossed the $50,000 price mark for the first time ever but has since seen a slight retrace, probably triggered by profit-taking at a new all-time high.
- BTC is up almost 70% year-to-date, with some commentators saying it is in the middle of a supercycle.
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