In a recent podcast, San Francisco Federal Reserve President Mary Daly expressed her views on the classification and potential of cryptocurrencies. Daly emphasized that cryptocurrencies should be regarded as a distinct asset class, rather than being grouped with gold. She also noted that while cryptocurrencies share some similarities with gold, they are not yet ready to be considered a currency.
Defining Cryptocurrencies
Daly highlighted the complexity of cryptocurrencies, stating that they require a clear definition to understand their role in the financial landscape. “We need to decipher what it means, and once we do that, we can define it,” she said. According to Daly, cryptocurrencies can function as a medium of exchange, a stock, or an asset that maintains or loses value, but these terms need to be clearly defined.
Distinguishing Cryptocurrencies from Gold
Daly differentiated cryptocurrencies from gold, saying that while they may exhibit some gold-like properties, they are not a gold-like asset. This view is in line with Federal Reserve Chairman Jerome Powell’s stance that cryptocurrencies are not yet ready to become currencies. However, some cryptocurrency enthusiasts argue that they should be considered currencies at this stage in their development.
Source: BlockBeats news
Source: M.theblockbeats.info
The post Cryptocurrencies Deserve Separate Asset Class, Says San Francisco Fed appeared first on CoinBuzzFeed.