In the Fed’s view, bitcoin is a competitor to gold, not the dollar.

Bitcoin can compete with gold, but has little chance of becoming an alternative currency. CNBC aired that view voiced by James Bullard, president of the Federal Reserve Bank of St. Louis.

“In its policy, the Federal Reserve anchors its view on the premise that the U.S. economy and the global economy at large will continue to rely on the American dollar,” he said.

During the interview, Bullard did not back the arguments of Bitcoin proponents. For him, bitcoin is simply one of the digital currencies with high volatility. He believes that there must be some stability relative to rivals and to goods and services for it to merit claiming something more.

In the interview, Bullard drew an analogy between Bitcoin and the commercial-bank-printed ‘fake dollars’ issued during the Civil War of 1861-1865.

Earlier, the philosopher and author of the cult work The Black Swan, Nassim Nicholas Taleb, stated that bitcoin has not established itself as a means of payment due to high volatility.

Earlier, the St. Louis Fed published a report in which assessed the potential for integrating DeFi into the financial system.

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