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As Bitcoin surges, St. Louis Fed's Bullard downplays its economic significance

Bullard said most investors want a "safe haven" and "stable store of value," which Bitcoin doesn't have yet.
Credit: SLBJ
St. Louis Fed President Jim Bullard

ST. LOUIS — As the price of Bitcoin topped $50,000 for the first time, St. Louis Fed President Jim Bullard said the cryptocurrency poses no threat to the U.S. dollar in the global economy.

"I just think for Fed policy, it's going to be a dollar economy as far as the eye can see," Bullard said in an interview with CNBC Tuesday. "A dollar global economy, really, as far as the eye can see — and whether the gold price goes up or down, or the Bitcoin price goes up or down, doesn't really affect that."

One reason, he said, is that most investors want a "safe haven" and "stable store of value," which Bitcoin doesn't have yet.

Bullard said the proliferation of privately issued, competing currencies such as Bitcoin, could be problematic.

"You don't want to go to a non-uniform currency where you're walking into Starbucks and maybe you'll pay with Ethereum, maybe you'll pay with Ripple, maybe you'll pay with Bitcoin, maybe you'll pay with a dollar. That isn't the way we do this. We have a uniform currency."

Click here for the full story from the St. Louis Business Journal.