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Dollar Is Not Threatened By Cryptos, Fed's Bullard

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James Bullard, the head of the Federal Reserve Bank of St. Louis, has insisted on dollar's supremacy over emerging cryptocurrencies.

In an interview on the sidelines of the Consensus 2018 conference in New York, he expressed confidence that the dollar is not threatened by cryptos.

"The drift to a nonuniform currency could become a serious issue for the U.S. if cryptocurrencies take up a large volume of trade," he told CNBC. "You could imagine going into a store and now you have 10 different ways or 100 different ways that you can pay. That is exactly what people have not liked historically. They want a uniform thing — a dollar is a dollar."

The St. Louis Fed President shared his views on the impact of the fluctuating nature of the softcoin on the potential crypto community.

Inconsistent exchange rates remain a "big deal" for cryptocurrencies in getting more widespread acceptance, according to Bullard.

The key for bitcoin and other softcoins will be convincing investors that the products can maintain value, the central bank official said.

Bullard ruled out the idea of the Fed introducing its own digital currency at this point.

High volatility in price has kept speculators heavily active in crypto trading. But in Bullard's opinion, that factor will likely also drive away consumers and businesses.

Bitcoin is showing signs of recovery after the word's most popular cryptocurrency plunged from its peak of $19,500 in December to around $6,000 within few months.

From April, the market has been going through a mid-term recovery, and and it saw Bitcoin reaching above $9,000.

This week, the price was hovering around $8500.

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