While the status of cryptocurrencies such as Bitcoin (BTC) continues to be a matter of debate, San Francisco FED President Mary Daly said that cryptocurrencies do not yet have currency status and should be considered a separate asset class.
US San Francisco Fed President Mary Daly compared cryptocurrencies to gold in an interview with Yahoo Finance.
Stating that cryptocurrencies and gold are not the same, Daly emphasized that cryptocurrencies should not be seen in the same class as gold and should be classified as a separate asset class.
Daly added that cryptocurrencies have a multifaceted structure and that a clear definition is needed.
“I see cryptocurrencies as a complex thing and the service we need to provide to everyone is to clearly define what they are.
Cryptocurrencies can be a medium of exchange. It can be a stock (an asset that retains its value or sometimes loses value.)
“That's why I don't think cryptocurrencies are like gold. Sometimes they have properties like gold, but I think they have fundamentally different properties than gold.”
Daly noted that he agreed with Fed Chairman Jerome Powell’s views that cryptocurrencies do not yet have the status of a currency. However, Daly added that for cryptocurrencies to achieve such status, their value must be aligned with economic growth.
Daly’s perspective contrasts with that of Powell, who described Bitcoin at the New York Times DealBook conference as a speculative, highly volatile digital asset more akin to gold than the dollar, and noted its limited use as a payment method or stable store of value.
*This is not investment advice.
