US Official: We Think Blockchain Technology Is Very Interesting

A top United States policy maker made positive remarks about Bitcoin. St. Louis Fed president James Bullard identified positive aspects of cryptocurrency, saying that crypto is “facilitating trade that would not otherwise occur. Some of that’s illegal, but some of that is avoiding costs that would otherwise be there.”

Asked whether Bitcoin was a threat to the US dollar, Bullard voiced uncertainty about the potential competition the leading cryptocurrency could pose, saying, “I don’t think so at this point […]. We don’t know how the future’s going to unfold.”

“My idea is that there’s a lot of currency competition going on right now,” and he added: “The dollar has been the winner historically because it’s backed by the largest economy and a relatively stable policy in terms of low inflation and that’s going to be tough to beat. But a lot of people here want to beat it.”

Regarding the blockchain, Bullard was much more openly bullish, saying “…we think blockchain technology is very interesting […] we want to be very engaged and thoughtful as these proceeds.”

When he was asked if the Fed was considering issuing its own cryptocurrency, he said: “We can certainly look at that as a possibility. And there are different parts of the Fed that look at all kinds of applications of blockchain technology. But I wouldn’t say there’s any plan at this point.”