The head of the St. Louis Federal Reserve believes bitcoin does not pose a threat to the U.S. dollar’s status as the global reserve currency.
In an interview with CNBC on Tuesday, James Bullard said the Fed’s policy focus will remain fixed on a global dollar economy “as far as the eye could see.”
“Whether the gold price goes up or down or the bitcoin price goes up or down doesn’t really affect that,” said Bullard.
Instead, the Fed’s president flagged “privately issued” cryptocurrencies, not sanctioned by the government, as being the primary issue. Bullard then drew comparisons to a time in U.S. history before the Civil War when banks issued their own notes.
“They were all trading around and they traded at different discounts to each other and people did not like it at all,” said Bullard. “I think the same thing would occur with bitcoin here.”