Most Cryptocurrencies Are ‘Worthless’: St. Louis Federal Reserve President

Most Cryptocurrencies Are ‘Worthless’: St. Louis Federal Reserve President

James Bullard – the President of the Federal Reserve Bank of St. Louis – advised that investors should be extra cautious when investing in digital assets. The US banker went further, labeling most of them as ”worthless.” Nonetheless, he revealed that the Fed is looking into launching its own digital coins.

Most of The Assets Are Useless

In a recent interview with Yahoo Finance, James Bullard – CEO and President of the Federal Reserve Bank of St. Louis – shared his thoughts about the growing trend of cryptocurrencies. The central banker admitted that those digital assets, which have the ability to “facilitate transactions that are difficult to make in conventional currencies,” are suitable to stand alongside fiat currencies.

On the other hand, he said that there are too many crypto assets and the majority of them are useless:

”We have a couple of thousand of these around, most of them are worthless.”

The executive also scratched the topic of the unpredictability of cryptocurrencies. He sounded a note of caution for investors who are about to invest, underlining the volatility of the assets as the most significant risk. However, Bullard opined that most traders are aware of the dangers:

”I think, for the most part, people are going into this with eyes wide open; they’re certainly not blind to the idea that this is a volatile area.”

Furthermore, the CEO surmised that the cryptocurrency space is full of intriguing developments lately. Bullard said that currency competition is nothing new, as it has happened many times in monetary history. Additionally, he hinted about Fed’s intentions to launch its own Fed coins.

James Bullard. Source: FT
James Bullard. Source: FT

BTC is More of A Gold Rival

This is certainly not the first time when James Bullard shares his thoughts on crypto. As CryptoPotato reported previously, he noted that Bitcoin is more of a gold rival rather than an actual currency.

The executive admitted that the primacy of the US dollar is not dependent on BTC or gold, informing that the last two assets experience significant price changes. 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.” He argued that trading with digital assets is not desirable as they are too many and too volatile.

As part of his dismissal of BTC, Bullard went further, comparing the primary cryptocurrency to ‘faux dollars’ created by U.S. banks during the American Civil War.

Featured Image Courtesy of WSJ

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