back to article America, use Bitcoin instead of old-school money? Not likely, says Fed

Federal Reserve Vice Chair for Supervision Michael Barr says crypto-assets are "unlikely to grow into money substitutes" because they have proven to be so volatile and posed "novel" risks. Barr was speaking at the annual fintech ecosystem talk shop in Washington, DC Fintech Week, where he said the idea you could use them to …

  1. Anonymous Coward
    Anonymous Coward

    Trash talk

    Good to know how far behind the Fed's people are. The comment from the Mozilla dev was especially amusing. "breaking news, uniformed web developer flapping arms and gums about problem the crypto community already new about, and solved years ago." Even the clickbait title. No one who can to basic math thinks Bitcoin is going to replace traditional money. While that isn't everyone in the DeFI/Web3 world, it does include the ones that will matter. (I suspect most of the crypto junkies that can't do the math are going to zero themselves out on a long enough timeline).

    Don't get me wrong, the US Gov will need to lay some regulatory action on dollar backed stable coins especially, and all the shit tokens, loan systems, etc, at least within it's sphere of influence. Whatever cryptocurrencies will become will exist at the intersection of the classical currency and banking markets and DeFI. And they will probably want to make money laundering hard, and the G-men have tools to succeed at that, if they get their shit together.

    But they are going to need to get some people at the top that are a little more up to speed with what is happening, and start working with the projects they are going to end up either endorsing or at least tolerating, instead of standing on a podium and shouting at the void.

    1. Yet Another Anonymous coward Silver badge

      Re: Trash talk

      Problem is that if there was a government approved $ stablecoin then why would I need a high st bank?

      Effectively I'm banking on the Fed's blockchain - so why do I put up with Wells Fargo or BoA 'customer service'?

      Presumably the Fed are the only group in America who wouldn't cheer the total destruction of all retail banks

      1. MachDiamond Silver badge

        Re: Trash talk

        "Problem is that if there was a government approved $ stablecoin then why would I need a high st bank?"

        The government is going to contract with BofA or Wells to "administer" the program. Half the time when I look to see if I can use plastic on a government site, the transaction is shunted to some bank for processing (which I don't do).

        It also means that the politicians that have awarded those contracts can be assured of a nice comfy job in a few years. At least some speaking engagements and consulting if not full time "employment".

    2. Anonymous Coward
      Anonymous Coward

      Re: Trash talk

      "about problem the crypto community already new about, and solved"

      They solved math? 42?

      You need to cite this proof that shows things that require math no longer require math... I'm about to walk into my bank and get RICH!! They already told me sternly that a negative balance multiplied by another negative balance won't jive. So, fingers crossed for your proof!

    3. Michael Wojcik Silver badge

      Re: Trash talk

      I don't always agree with Zawinski, but I know who he is and what he's done. That's more than I can say for some ninny posting vapid generalities anonymously in the Reg forums.

      Come back when you have a substantial, coherent argument, eh?

  2. doublelayer Silver badge

    Well there's a surprise

    And here was I thinking the U.S. was about to hop on the Bitcoin as legal tender train. It just makes so much sense.

    Nobody is going to do that in reality. The U.S. had a long time on the gold standard, and they left it for many reasons. The second-to-last thing they want to do is to start doing that again (and the rest of the world doesn't want that either). The last thing they want to do is get back on the gold standard with a commodity even harder to deal with, and Bitcoin is a perfect example of that. Countries like having control of their currencies for many reasons, both good and bad, and they're not about to give that up unless they have to.

  3. MrGreen

    The FED Are Not Fooling Anyone

    The FED don’t like Bitcoin because they can’t go to war with it to defend the dollar.

    1. Anonymous Coward
      Anonymous Coward

      Re: The FED Are Not Fooling Anyone

      It would be easier to go to war with Bitcoin than actual physical war. You just pass a law preventing the conversion of Bitcoin into dollars. (or pounds, or euros) I'm still quite frankly absolutely amazed that this hasn't happened, given that the main point of all crypto is either 1: a pyramid scheme or 2: Hiding illegal transactions.

  4. Anonymous Coward
    Anonymous Coward

    FED: Please stick to using the dollar...

    The currency that's lost 96% of its value in the last century.

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