Incoming NY Fed Reserve Bank Chief Says Bitcoin Can’t Replace Dollar

Bitcoin Isn’t Currency, Can’t Replace Dollar, Says Incoming New York Fed Chief

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  • John Williams declared that cryptocurrencies are not currencies at all.
  • He claims cryptos do not meet the basic requirement of currency in any way.

United States: Report reaching revealed that John Williams, the incoming New York Federal Reserve Bank Chief, has declared on Friday 20th April that all digital currencies are not currencies in any way and cannot replace the US Dollar. He insisted that digital currencies fail the basic test of what a currency should be. He said:

“Cryptocurrency doesn’t pass the basic test of what a currency should be, [currency is] basically something with a store of value [and cryptocurrency is not that].”

John Williams, who is presently the San Francisco Federal Reserve Bank Chief, is possible the next Chief of the New York Federal Reserve Bank. The cryptocurrency-skeptic criticized cryptocurrencies, claiming that cryptos can never replace fiat money because they are riddled with problems. He said:

“The setup or institutional arrangement around bitcoin and other cryptocurrencies [is problematic],” Williams said. “First of all, they have problems with fraud, problems with money-laundering and terror financing. There’s a lot of problems there.”

More so, John criticized the inconsistent price movements of digital currencies, claiming that the volatility makes cryptos an unstable store of value and this hinders their ability to be used as reliable means of payments for goods and services.

This remark was made by John Williams just as the price of Bitcoin enjoyed a post-Tax Day rally. Tom Lee, the Fundstrat co-founder, already forecasted that the price of Bitcoin would rise after Tax Day passed in the US, and that’s exactly what happened.

John’s assertion also deviates sharply from the belief of Jack Dorsey – the Twitter billionaire. Jack believes that Bitcoin would eventually replace all other fiat currency and becomes world’s single currency. More so, Tim Draper, an avowed crypto bull, has no doubt about his prediction that the price of bitcoin would hit $250,000 in 2022. Tim said boldly:

“I’m thinking $250,000 a bitcoin by 2022. Believe it. They’re going to think you’re crazy but believe it. It’s happening and it’s going to be awesome!”

Tim also predicted that blockchain tech would disrupt and transform finance, healthcare, and many other industries. He said:

“It’s honest, it’s straightforward, it’s incorruptible, and it’s fair. The blockchain is one of the most transformational technologies that has happened in the history of the world.”

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