Fed’s Bullard Says Most Cryptocurrencies ‘Are Not For Anything’ –

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Fed’s Bullard Says Most Cryptocurrencies ‘Are Not For Anything’ – fr


St. Louis Fed Chairman James Bullard warned on Monday that investors should be careful when investing in cryptocurrencies, and dismissed most of them as “worthless.”

In an interview with Yahoo Finance, Bullard admitted that digital currencies capable of “facilitating difficult transactions in conventional currencies” have a place alongside fiat currencies.

However: “We have a few thousand, most of them are worthless,” he said.

Bullard encouraged investors to be aware of the risks inherent in investing in cryptocurrencies – particularly with regard to price volatility – and to “be careful”.

“I think for the most part people like to go into this topic with their eyes wide open, they are certainly not blind to the idea that this is an unstable area,” he told Yahoo Finance.

Still, Bullard said there was “a lot of interesting stuff in this space,” and added that “of course the Fed is also considering a Fed coin. “

“We have a lot of things to do, looking at this very carefully,” he said.

On Monday, Fed Governor Lael Brainard said the central bank was closely monitoring China’s efforts to develop a digital currency, and said it was essential that the Fed be “at the table” in everything. development of standards for central bank digital currencies. .

Last week, Fed Chairman Jerome Powell said the central bank would step up its exploration of the digital dollar this summer, stressing that it would not replace cash.

Crypto prices have skyrocketed this year, but have fallen sharply over the past month. After dropping over the weekend, bitcoin prices BTCUSD,
-3,50%
and dogecoin DOGEUSD,
-4,86%
rallied early on Monday, although retreating slightly on Monday evening. While cryptocurrencies trade around the clock, each trading session ends at 5 p.m. EST.

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