In the wake of sudden surge in the world’s flagship cryptocurrency Bitcoin, the federal reserve President of the United States Of America has said that the global reference fiat US Dollars was not in any imminent danger. He further clarified and proposed that the frenzy would ultimately go down and things would get corrected refering to what happened prior to the second world war when many banks were issuing different kinds of US dollars.
“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. Dollars can be traded electronically already, so I’m not sure that’s really the issue here”. He said.
“The issue is privately issued currency, 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. That isn’t how we do this. We have a uniform currency that came in at the Civil War time,” he affirmed.
What you should know.
Bullard is an economist who has been the president of the Federal Reserve Bank of St. Louis since 2008. Many analysts are of the opinion that going by the recent bull run of bitcoin and high global acceptance it is currently gaining, it may not be too long we see the fall of dollars as the main global reserve currency.
What you must know.
Currently, a lot of countries are trying to find a way to end the dollar economy. One of the leading countries in this quest is China.
In Russia, gold has already exceeded the U.S. dollar in the country’s reserves as Russian President Vladimir Putin focuses on de-dollarization. This was being viewed as a big threat to US dollars. Added to the emergence of Bitcoin which is more liquid albeit very volatile, many are already seeing the future of dollars to be blinking.
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