'Don't Do it': Federal Reserve Official Warns Against Purchasing in Bitcoin
The president of the Federal Reserve Bank of Atlanta needs just three words to convey his opinion on investing in Bitcoin and other cryptocurrencies: «Do not do it!»
Raphael Bostic, who has headed the Atlanta branch of the Fed since 2017, delivered this message on Tuesday in the Hope Global Forums annual meeting, which promotes entrepreneurship and financial inclusion.
«Do not do it,» Bostic said of investing in cryptocurrencies, according to a Bloombergreport. «They are speculative markets. They aren't currency. For those who have money you really need, do not place it in these markets.»
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? ," he said, adding in subsequent statements that he believes the «underlying [blockchain] tech is..
The president of the Fed's Chicago branch, similarly, argued that cryptocurrency investors risked „swimming with all the sharks in the world due to all the anonymity.
A recent report from The Federal Reserve Bank of New York shed a slightly more positive light on cryptocurrencies, asserting that they could be able to facilitate trustless payments but these payments are unnecessary in most advanced economies.
“Cryptocurrencies arguably fix the problem of making payments in a trustless surroundings, but it is not obvious that this is a problem that needs solving, at least in the USA and other advanced economies,» the report stated.
Former Fed Chair Janet Yellen said in her final press conference in that role which Bitcoin is a «highly speculative asset» which «plays a tiny role in the payments system.»
Present Fed Chair Jerome Powell, meanwhile, has said in the past he has «nothing against Bitcoin,» adding that the organization is «not broadly opposed or supportive of alternative currencies.»