Breaking News

The Fed: Cryptocurrencies are pulling the U.S. back to the 1830s, Fed official says

MarketWatch photo illustration/iStockphoto, Getty Images

Instead of ushering the U.S. into the future, cryptocurrencies are taking the country back to the 1830s, St. Louis Fed President James Bullard mentioned Monday.

In the pre-Civil War era, 90% of U.S. money provide was once privately issued banknotes. These currencies traded at other rates at other occasions and puts. There have been cut price books in each and every the town to keep track of the way much each and every forex should be discounted.

Is one thing like this happening lately?

“It for sure appears to be,” Bullard mentioned in a speech to CoinDesk Consensus 2018 convention in New York.

Perhaps to underscore his theme, digital currencies have been losing value during the last 10 days. The No. 1 digital forex, bitcoin BTCUSD, +0.42%  was once the most productive of a nasty bunch in trading on Monday.

Read: Bitcoin beneath force, nears a very powerful $8,000 give a boost to level

At present, there are many privately issued cryptocurrencies, trading at more than a few rates minute by way of minute, Bullard mentioned.

According to Investing.com’s current listing, greater than 1,800 cryptocurrencies have launched, he noted.

The forex arrangement pre-Civil War was once not fashionable and there was once a choice for uniform forex, which was once carried out right through the Civil War.

“The only explanation why this is not a bigger issue lately is that the whole volume of cryptocurrency trade is not that giant relating to the entire financial system,” he mentioned.

Nouriel Roubini, the famously bearish economics professor at New York University, mentioned that the cryptocurrency will take the U.S. “back to the stone age.”

Opinion: Cryptocurrencies taking us back to global of “The Flintstones”