Bitcoin

Expected Next In Line Fed President Claims Bitcoin Doesn’t Pass Test for a Currency

Rebecca Campbell | April 20, 2018 | 9:00 pm
Bitcoin
Bitcoin

Expected Next In Line Fed President Claims Bitcoin Doesn’t Pass Test for a Currency

Rebecca Campbell | April 20, 2018 | 9:00 pm

The current head of the San Francisco Federal Reserve Bank has become the latest to speak out against bitcoin and cryptocurrencies, claiming that they don’t pass the test for a currency.

Cryptocurrencies Fail Test

Speaking during a speech on Friday, John Williams, named to take over from William Dudley as the New York Federal Reserve president in June, argued that ‘cryptocurrency doesn’t pass the basic test of what a currency should be.’ According to Williams, a currency should have ‘a store of value,’ and that they should be able to support different financial and economic conditions, reports CNBC.

Williams said:

The setup or institutional arrangement around bitcoin and other cryptocurrencies, first of all they have problems with fraud, problems with money laundering, terror financing. There’s a lot of problems there.

His comments come at a time when bitcoin has been experiencing a surge in value over the past few days. According to CoinMarketCap, the number one cryptocurrency is trading at over $8,500 – at the time of publishing – pushing its market cap back up to $144.4 billion. However, it remains a far cry from December highs when it was trading within touching distance of $20,000.

Yet, even though the market saw the worst first quarter for bitcoin’s value in its history in the first three months of 2018, with market conditions elsewhere showing significant declines, optimism remains. Just yesterday it was reported that now is a good time to purchase bitcoin, with the bear market seemingly over, according to one hedge fund manager. Not only that, but one researcher has projected that the price of bitcoin could likely soar to $25,000 by the end of 2018.

Despite, this, however, Williams doesn’t appear to have much faith in the market, conceding that his views are ‘very biased’ considering he’s spent most of his career in the central banking world. In his opinion, ‘the idea of the supply of currency and thinking about currency really belongs more in the sphere of government and central banks.’

Interestingly, while some bankers appear to be arguing against cryptocurrencies and their steady growth into the mainstream, they seem to be failing to deal with the $164 trillion global debt problem, a figure reported by the International Monetary Fund (IMF).

Yesterday, it was questioned whether bitcoin and other cryptocurrencies could be the answer that the banking world needs to solve the issue. It remains to be seen whether or not that is the case; however, it begs the question: if the banking world can’t do it, isn’t it time someone else tried?

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  • Jon

    then what is “real” money used for? Laundering, bribes, drug trafficking, military weapons, a terrible government, abuse of tax payers money.

    • Blindfolded

      Drones, tomahawk missiles, propaganda, a police state to extort more money via civil asset forfeiture…and riot gear to put down those who don’t consent to being robbed.

  • Defiant

    If Bitcoin is not a million dollars by 2020, John Mcaffee will eat his own dick. In the mean time, John Williams, from the Federal Reserve bank, can eat mine.

    • JayDoe

      Awesome!!! LOL

  • Shawn

    LOL!

    “The setup or institutional arrangement around bitcoin and other cryptocurrencies, first of all they have problems with fraud, problems with money laundering, terror financing. There’s a lot of problems there.”

    Question:

    What currency is the most widely used for fraud, money laundering and terror financing?

    I’ll save you some research. The US Dollar. Furthermore, currency must have “a store of value”. What gives the US Dollar a store of value? Nothing. The gold and silver backing of the dollar was removed in 1971. The US Dollar only has value because people thinks it does.

    I still have yet to see an institutional money expert give a compelling reason why crypto currency isn’t valid. But I know they never will. The minute they admit it is better is the minute they cut their own money train.

    • Blindfolded

      The US Dollar only has value because people thinks it does.

      Wrong. The USD has value because it is backed by the bonds upon which the currency is issued in a debt-based monetary system.

      Thus, the ability to repay bonds is what supports a currencies value, and the ability to repay bonds is a function of taxation, which without consent is theft.

      Therefore, the USD and all other debt-based fiats are backed by theft…i.e. the initiation of force, violence and coercion upon non-consenting victims.

      Therefore, all debt-based fiat currencies are effectively Blood Money.

  • Stacy Dale Barendse

    LOL! The Fudsters at work! In 1913 a dollar was worth 1 dollar. Now worth less than a penny. Good job Dickhead!

    • Blindfolded

      …because that’s how ‘currency is supposed to work’, right? So says the FED!

  • Hello Man

    John Williams says “The setup or institutional arrangement around bitcoin and other cryptocurrencies, first of all they have problems with fraud, problems with money laundering, terror financing. There’s a lot of problems there.”

    Hmm, interesting, it’s as if he’s saying this stuff ONLY happens in cryptocurrency. I think a LOT more of this stuff happens with pure fiat. Lets not forget the worlds biggest ponzi scheme of Bernie Madoff with over $65 Billion worth of fraudulent scheme happened with USD not BTC.

  • dickiefresh

    Every time one of these central bankers talks, all I hear is the teacher from charlie brown.

    This tickled me the most
    the idea of the supply of currency and thinking about currency really belongs more in the sphere of government and central banks.’

    Translated as: poor baby doesn’t like losing control.

    I understand that the article author is presenting this as Irony “, they seem to be failing to deal with the $164 trillion global debt problem” but that exactly what they want. More people in debt, means more reliance on the system and less independence from their global ponzi scheme. They sell bonds with the promise of paying interest on that bond… If you print the money, the interest not to mention the original purchase price is completely meaningless.

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