Thursday, November 30, 2017

Trump Fed Appointee Warns On Bitcoin: 'Serious Financial Stability Issues'

The more popular bitcoin and other cryptocurrencies become the more danger they pose to the financial system, new Federal Reserve Governor Randal Quarles warned in a speech this morning.

"While these digital currencies may not pose major concerns at their current levels of use, more serious financial stability issues may result if they achieve wide-scale usage," Quarles said, according to prepared remarks from a speech he is delivering in Washington, D.C.

Quarles said that if digital currencies can't be exchanged at a stable rate for dollars during difficult times, "the resulting price risk and potential liquidity and credit risk pose a large challenge for the system."

"I believe the financial industry is increasingly recognizing that we should separate the concept of digital currencies from the innovative new technologies that they have employed to transfer assets," Quarles said.

Translation: The government is going to try and smash Bitcoin and other digital currencies. 

It is difficult to see how they will not succeed. They will put up an aggressive fight to ensure that their controlled medium of exchange, the Federal Reserve note, will be the medium of exchange of the United States.


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