Crypto ‘Doesn’t Pass Test Of What A Currency Should Be’, Says Likely NY Fed President

The expected next president of the New York Federal Reserve Bank said that cryptocurrency “doesn’t pass the the basic test of what a currency should be”, CNBC reports April 20.

John Williams, who is currently the head of the San Francisco Federal Reserve Bank said in a speech Friday that a currency should be “basically something with a store of value.” He added that currencies need to be elastic in order to support varying economic and financial conditions. Williams expressed concern over problems of illicit activity in the crypto community, saying:

    “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 lots of problems there… The idea of the supply of currency and thinking about currency really belongs more in the sphere of government and central banks. My view is it’s more a promise of technology.”