On Monday 14th May, the Chief Executive Officer and 12th President of the Federal Reserve Bank of St. Louis, James Brian Bullard had given a presentation on blockchain technology, cryptocurrency and their impact in the financial market at the Consensus 2018 in New York. He spoke about how the growth of Bitcoin [BTC] and other cryptocurrencies are working against market-based currency trading system which offers consistent pricing.
James Bullard has said that both private and public currencies can co-exist in this market, Cryptocurrency and fiat currency would both exist together. He is open to studying the potential and possibility of the U.S central bank coming with their own cryptocurrency, the Fedcoin.
But he also feels that there would be no reason for the central bank to do something like that. A cryptocurrency is powered by a blockchain which has a shared ledger of the database which is being maintained and verified by the network of users.
The Federal Reserve or the central bank is open to using blockchain technology as it is not a monolithic organization.
Yesterday during his presentation, James Bullard says that cryptocurrencies are forming a “Non-Uniform” currency but that is something which has failed before and then replaced and rejected. He explains that a there would be many types of currencies which can trade at the same time for different prices in the same market causing inconvenience to both consumers and businesses.
James Bullard says that it is best to facilitate market-based exchange because presently cryptocurrencies are indirectly pushing in the wrong direction while trying to solve an important social problem.
There are over 1,800 cryptocurrencies which have been launched worldwide after Bitcoin was first released in 2009. He had a contrasting opinion about using a uniform currency which is stated backed and supported by a stable monetary policy brought by the government bank.
He has said that U.S Dollar is the world’s most dominant currency and will continue to be so because it comes from the world’s largest economy. It can be easily traded as it also backed by the Federal Reserve, which is one of the most powerful banks.
Salman Rahim, the founder of World Cerebrum tweeted:
“CEO of Federal Reserve Bank says Private and Public currencies will co-exist”
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