KANALCOIN NEWS – President of the Federal Reserve Bank St. Louis, James Bullard, issued a statement about Bitcoin recently. According to Bullard, the US dollar will never be replaced, despite the recent rise in popularity of Bitcoin.
The soaring price and popularity of Bitcoin in recent times seems to have caused various responses from many parties. Economic and financial experts also stepped in to provide opinions about this phenomenon.
One of them is the President of the Federal Reserve Bank St. Louis, James Bullard. In an interview with CNBC that was reported by Kanalcoin.com from News.Bitcoin.com, Bullard shared his views on Bitcoin.
According to Bullard, Bitcoin until now and will not pose a serious threat to the world’s top reserve currency, namely the United States dollar. For Bullard, who is an economist, the US dollar still has a special place in people’s hearts.
“I’m just thinking for Fed policy, it’s going to be a dollar-based economy as far as the eye can see, a global dollar-based economy as far as the eye can see, and whether gold prices go up or down, or bitcoin prices go up or down, it doesn’t matter to the dollar,” the man said. who has served since 2008.
Bullard himself also admitted to being concerned about the popularity of Bitcoin. According to him, Bitcoin is not an official currency issued by the state. Bitcoin is a private currency that is not bound by local government regulations.
“The dollar can already be traded electronically, so I’m not sure that’s the case here. The problem is the private currency,” said Bullard.
Bullard also said that Bitcoin could have the same fate as private currencies that have appeared before. Bullard takes the example of Bank of America, JPMorgan, and Wells Fargo issuing their own currencies.
Bullard believes that Bitcoin’s popularity will not last long and will end in the near future.
“They all trade and they trade at different discounts from each other, and people don’t like it at all. I think the same will happen with bitcoin here,” Bullard said.
“You don’t want to use a non-uniform currency where you walk 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. That’s not how we do this. We have a uniform currency that came in during the Civil War,” Bullard added.
Bullard emphasized that currency competition is natural in the economic world. Competition has also occurred between the US dollar, yen, and euro in the economic world. However, according to Bullard, still nothing can replace the US dollar.
“This is currency competition, and investors want safe havens. They want a stable deposit value, and then they want to invest in that currency,” explains Bullard.
“None of them will replace the dollar,” he added.
“It’s going to be very difficult 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.