James Bullard is the President of the Federal Reserve of St Louis. Recently on the 16th of February, Tuesday, he informed that they believe that the growing Bitcoin price does not seem to pose any serious threat to the US dollar-based on the reserve currency of the world.
Bullard stated that a drastic change in the dollar economy can affect the policy of the Fed. As a result irrespective of the fact the gold price might increase or reduce or there are massive movements in the Bitcoin price, it has no effect on their policy.
Bitcoin Price Divorced From US Dollar
Especially Bitcoin prices have emerged as the champion due to the support of the cryptocurrency bulls who showed immense faith in BTC. They believed that BTC can be used as a hedge against inflation or simply the debasement to fiat currencies including the dollar.
Several people and experts have considered Bitcoin as the alternative gold. In addition, BTC as well as the other cryptocurrencies have also represented themselves as a path to purchasing goods and services just like with actual money.
Bullard has chaired St Louis Fed from 2008 and has expressed concerns regarding the widespread transactions with a variety of cryptocurrencies that are not released or authorized by the government.
He stated that dollars can be traded through a digital way so that is not an issue. However, their challenge is dealing with currencies that are privately issued.
Bullard compared this situation with the Civil War time when there were various kinds of currencies being circulated and used. He also named the Euro and Yen as two potentially strong currencies. He also said that currency competition is common and usual.