US Fed Governor Waller 'Sees Potential' in Crypto for Settlements
According to reports, the Governor of Federal Reserve Bank of St. Louis, James Bullard revealed this week that he sees potential in cryptocurrency for payments and settlements. This news comes just days after US Federal Reserve announced a digital dollar research project.
During a speech at a webinar organized by financial technology firm NYDIG, Bullard acknowledged the entrance of cryptocurrencies into the broader economy and stated that it could pave the way towards faster settlements and payments.
"I think there is potential there," Bullard said. "Crypto is here to stay in some form or other."
Bullard also discussed virtual currencies issued by central banks like the US Digital Dollar as a pivotal move to realize a more efficient payments system.
"I think we should be looking seriously at whether it makes sense to have a Federal Reserve digital currency – a Fedcoin – and what other countries are doing in that regard," he said.
"Central banks seem increasingly aware of the fact that they need to make sure that they stay abreast of these developments, which suggests they may want to provide secure digital money, especially if private sector solutions don't develop quickly enough."
The comments by Bullard come amid an increasing trend amongst central banks globally, who are diligently working on developing their own digital currencies. Earlier this month, the US Federal Reserve announced its plan for researching the potential benefits of creating and using its own digital currency.