President Of Federal Reserve Bank States ‘Crypto Is Not Currency’

President Of The Atlanta Federal Reserve Declares ‘Crypto Is Not Currency’

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  • President Raphael Bostic of the Federal Reserve Bank of Atlanta states that ‘crypto is not currency’
  • He, therefore, urges the US citizens to avoid transacting and investing in cryptocurrency.

Atlanta, US: A recent report revealed that Raphael Bostic, the President, and CEO of the Federal Reserve Bank of Atlanta has expressed his negative position towards transacting and investing in digital currency at the Hope Global Forums’ annual meeting, where he urged the US citizens to avoid cryptocurrencies.

Also read: ESMA Toughens Rules on Cryptocurrency Derivatives

During the annual meeting, which was considered to be “the largest gathering of leaders in the world on behalf of empowering poor and underserved communities”, President Raphael expressed criticism concerning the crypto markets, where he claimed that cryptocurrencies are not even currencies. According to Raphael:

“Don’t do it… They are speculative markets. They are not currency. If you have money you really need, do not put it in these markets.”

Raphael Bostic, who became the president of the Federal Reserve Bank of Atlanta last year March, is not the only one among the leaders of the Federal Reserve Bank who are skeptical of digital currencies like Bitcoin. In January, Charles Evans – the President of Chicago Federal Reserve Bank claimed that Bitcoin is “not money-like”, and that cryptocurrency investors are “swimming with all the sharks in the world because of all the anonymity.”

The President of the Minneapolis Federal Reserve Bank, Neel Kashkari, stated last December that:

“I think of it a little bit like Beanie Babies. If they were jumping in price by 1,000 times, or $10,000 each, what would we make of Beanie Babies being priced where they are?”

The United States’ Internal Revenue Service (IRS) sees digital currencies as properties, and as such digital currencies are subject to federal taxes. Recently, the US IRS recently reminded the US citizens to report their earnings from cryptocurrency trading, otherwise, they would get into trouble with the federal tax laws.

If cryptocurrencies are not considered as currencies, they would definitely be properties. Interested investors should, therefore, be allowed to invest in cryptocurrencies as long as they are ready to report their earnings.

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