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NY Fed Economists: ‘Advanced Economies’ May Not Need Crypto

NY Fed Economists: ‘Advanced Economies’ May Not Need Crypto

11 feb. 2018 10:55

The Federal Reserve Bank of New York published an interview on their site Friday, Feb. 9, in which two of its economists explain cryptocurrency, highlighting crypto’s “trustless” nature, but expressing doubt that cryptocurrency could ever “realistically compete with current payment methods.”

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Michael Lee and Antoine Martin, both economists in the New York Fed’s Research and Statistics Group, took turns answering questions covering basic concepts of cryptocurrency and financial trust.

On the notion that virtual currencies are not “backed by anything real”, such as gold, Lee declared pointedly:

“You're right that they [virtual currencies] are not backed by a physical commodity, but then neither is the dollar and most other modern currencies.”

  
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