The President of the Federal Reserve of Atlanta, Raphael Bostic, believes that the cryptocurrency sector deserves attention. Especially now that the market is in a dramatic Phase.
The President of the Federal Reserve of Atlanta, Raphael Bostic, has spoken about the rapidly developing cryptocurrency sector and said it should not be ignored. The Federal Reserve official yesterday mentioned the significant developments in the FinTech field, adding that cryptos could not afford to be ignored.
Bostic specifically referred to volatility in the market, adding that it is one of the aspects that prevents the use of these crypto assets as an alternative to fiat currencies. Although he acknowledged that stablecoins are better suited to become traditional currency substitutes, he also said that they are still far from meeting all requirements.
“The crypto space is especially at the moment […] an extremely volatile market, and I don’t think its characteristics are conducive to making them currencies at the moment“he said.
The remarks come just a week after St. Louis Federal Reserve President James Bullard revealed he is aware of the volatile nature of cryptocurrencies. Bullard made these comments amid the crashing crypto market, adding that the activity of the crypto market does not pose a significant threat to the financial system.
“In itself, I do not see this as a systemic concern at this time.“
Bullard was backed by Bostic, who confirmed in a conversation with Bloomberg TV that he was aware of the volatility. The two Federal Reserve officials agreed that volatility did not occur to such an extent that it would have affected the economy. Interestingly, Bostic explained [zu der Zeit]that he does not take the crypto sector into account when drafting policies that affect the general financial system.
Bank of England reveals Crypto skepticism
While banks and relevant authorities in the US have accepted cryptocurrencies and are working towards their regulation, the picture is different in the UK. Bank of England Governor Andrew Bailey yesterday described cryptocurrencies as “dangerous”at a meeting of the UK Parliament’s finance committee.
“I’m skeptical of crypto assets, frankly, because they’re dangerous, and there’s a lot of enthusiasm out there.“
Bailey, a long-time staunch crypto opponent, said he was critical of these because of the enthusiasm surrounding them. Earlier this month Bailey warned people not to invest in crypto assets. He claimed that this was like throwing money away.
Speaking to journalists after the Bank of England’s interest rate decision, he criticised crypto assets such as the Bitcoin, saying they had no “intrinsic value.” He went on to add that the terms crypto and currency did not deserve to be mentioned in one sentence as they do not “fit together.”