Copy link
Increase text size
Decrease text size
Link copied

Bitcoin (BTC) won’t threaten the dollar despite crypto’s popularity, says Fed’s Bullard

Despite BTC’s popularity, St. Louis Federal Reserve President James Bullard believes that the cryptocurrency won’t eclipse the dollar in international finance.

Image by: Chris Yunker / Flickr

Mon, 22 Feb 2021, 11:48 am UTC

Increasing institutional participation has been cited as one of the catalysts for the crypto market’s rally as more companies opted to hold Bitcoin as a reserve asset. Despite BTC’s popularity, St. Louis Federal Reserve President James Bullard believes that the cryptocurrency won’t eclipse the dollar in international finance.

James Bullard said Bitcoin does not pose a threat to the U.S. dollar’s status as the world’s reserve currency despite the increasing interest in the crypto and its soaring price, reported. Bullard is the president of the Federal Reserve Bank of St. Louis since 2008 and is also an economist.

“I just think for Fed policy, it’s going to be a dollar economy as far as the eye can see — a dollar global economy really as far as the eye can see — and whether the gold price goes up or down, or the bitcoin price goes up or down, doesn’t really affect that,” Bullard said on CNBC’s “Squawk Box” on Tuesday.

Bitcoin is becoming more popular among companies for its store of value and as a hedge against the expected inflation due to pandemic-related money printing activities by governments. Cryptocurrency is also increasingly used for cross-border transfers and as a means of payment for goods and services.

However, he expressed his concern about using cryptocurrencies not issued by governments. “Dollars can be traded electronically already, so I’m not sure that’s really the issue here,” the Fed president added. “The issue is privately issued currency.”

He likened the current crypto situation to what happened before the Civil War when banks such as JPMorgan, Wells Fargo, and Bank of America issued their own notes. The system did not last and he fears the same might happen to cryptos such as Bitcoin.

“They were all trading around and they traded at different discounts to each other, and people did not like it at all,” Bullard said. “I think the same thing would occur with bitcoin here.”

Bullard argued that people will eventually prefer a uniform currency instead of a dazzling array of payment options. “You don’t want to go to a nonuniform currency where you’re walking into Starbucks and maybe you’ll pay with ethereum, maybe you’ll pay with ripple, maybe you’ll pay with bitcoin, maybe you’ll pay with a dollar,” he explained. “That isn’t how we do this. We have a uniform currency that came in at the Civil War time.”

He also does not believe that Bitcoin could threaten the greenback’s reserve currency status as even strong currencies such as the euro and the yen weren’t able to do so. “It’d be very hard to get a private currency that’s really more like gold to play that role so I don’t think we’re going to see any changes in the future,” Bullard said.

In January, Former Canadian Prime Minister Stephen Harper also said that Bitcoin isn’t likely to replace the dollar. However, the crypto can become an alternative reserve currency.

“Unless the U.S. becomes a catastrophe, it’s hard to see what the alternative is to the U.S. dollar as the world’s major reserve currency,” Harper said. “Other than you know gold, bitcoin [and] a whole basket of things, right? I think you’ll see that the number of things that people use as reserves will expand, but the U.S. dollar will still be the bulk of it.”

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • lenniiijuss
  • 2021.02.24 15:57:50
recovring stiolen bitcoin has now been made possible all you need do is hire a professional to get the job done. send an e ma!| to Fastrecovery02gma!|come he is the professional who helped recover 450k worth of bitcoin stolen from my Wallet.
  • 1
  • ·
  • 0
  • jamesrodhyth
  • 2021.02.23 02:34:07
I have gotten back all my lost fund and bonus from binary option They stocked all my trading capital and deprived me access into my account for over two months now after I’ve invested $200K with them, my hard earned money. Thought I was not gonna see this day, but as God may have it, today I’ve got back all my money back for real. I will forever remain grateful to God. If you’ve been locked out from logging into your binary option trading account or you are unable to make withdrawal from your broker account, maybe because your broker manager is asking you to make more deposit before you can place a withdrawal and you need assistance, kindly reach out to ULTIMATEFUNDRECOVERY on gmail and they will guide you on steps to take to regain access to your account, make withdrawal freely and easy, as well as recover all your lost funds. h also has
WHATSAPP:+1 830 507 3476
TEXT: +1 830 507 3476
  • 0
  • ·
  • 0
  • Bitcoin (btc) $64,329.00 (+3.04%)
  • Ethereum (eth) $2,372.01 (+7.08%)
  • Binance Coin (bnb) $581.58 (+8.23%)
  • XRP (xrp) $1.90 (+18.01%)
  • Cardano (ada) $1.54 (+17.31%)
  • Bitcoin (btc) $64,329.00 (+3.04%)
Apr 14, 2021 (Wednesday)
Famous Photographer Kim Joong-man To Launch His First NFT Series On TrihumphX
BTC Surges by 1.01% Within 5 Mins, Marking 64,641.53 USDT
Kenyan Athlete And Olympic Champion Eliud Kipchoge Gets $40K In ETH After Auctioning NFTs Of 'Key Moments'
CoinNess Market Surveillance Apr. 14: BTC Trading Above $63000 Level
Kraken CEO Confirms Public Offering To Come If Over-Regulation Doesn’t Force The Platform ‘Out Of The Country’
Crypto Market Sentiment On Apr 14: Market In "Greed"
ETH Tops List Of Crypto Net Inflow With $275.63 Mln In Past 10 Hours
Data Summary Of's Perpetual Contract: April 14
Apr 13, 2021 (Tuesday)
The volume of staked assets on Lido has exceeded $1 billion.
20% Of Users Confident Of Above $100K Bitcoin (BTC)
BTC Tops List Of Crypto Net Inflow With $1.07 Bln In Past 18 Hours
Linux Foundation, Insurance Group Roll Out Platform To Cut Costs Using DLT
BTC Soars To 63000 USDT Threshold
Court Denies SEC’s Request Seeking Years Of Financial Records From Ripple Execs
Market Cap Of Ethereum Outruns Toyota
US Firm Splashes Out On 4800 Bitcoin Miners Worth $34M
A House In Germany Is Being Sold As An NFT
BTC Surges by 1.13% Within 5 Mins, Marking 61,825.47 USDT
Dream PC Accepts Crypto Payment
Total market cap of USDT exceeded $45 billion, now marking $45.5 billion.
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.