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October 4, 2022
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James Bullard, Fed Chairman of St. Louis: BTC poses no threat to the dollar –

Federal Reserve Chairman St. Louis, James Bullard, rejects the notion that Bitcoin could pose a threat to the global supremacy of the US dollar.

James Bullard on Bitcoin: does not pose a threat to the dollar!

In a new interview with CNBC, Bullard said he believes the US dollar will remain the dominant currency for the foreseeable future.

– I just think that when it comes to Fed policy, this [USA] will be a dollar economy (…). It’s really about a global dollar economy. And whether the price of gold goes up or down, or whether the price of Bitcoin goes up or down does not really affect it – he said.

The Federal Reserve Chairman of St. Louis argues that with “strong “ Fiat currencies such as the EU euro and the Japanese yen, not appropriating the role of the dollar as a global reserve currency, it would be very surprising if the cryptocurrency beat the USD.

– The currency competition has always been going on. In the 19th century, the British pound was the best currency. It was replaced by the dollar in the 20th century – still the most popular currency, but it is a currency competition and investors want a safe haven. They want a stable stock of value. And then they want to make their investments in that currency – he noticed. – The yen is also very strong, the euro is also very strong. But neither of them can replace the dollar. It would be very difficult to get a private currency that is more like gold to play this role. I don’t think that’s where we’ll see any changes in the future – added.

BTC is a threat to gold

Bullard adds that he sees Bitcoin more as “rival “ for yellow metal.

I can do it [Bitcoina] characterize as a rival of gold – said and added that this is how you should think about cryptocurrency.

While Bullard is not optimistic about Bitcoin’s chances of replacing the dollar, last week the St. Louis posted reportin which it stated that it believes that decentralized finance (DeFi) and cryptocurrencies could significantly change the global financial landscape:

DeFi can lead to a paradigm shift in the financial industry and potentially create a more robust, open and transparent financial infrastructure.

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