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 cryptocurrencies are complex and not yet ready to be considered a form of currency.

Cryptocurrencies: A Complex Asset Class

Daly highlighted the complexity of cryptocurrencies, stating that they require a clear definition and understanding. She explained that cryptocurrencies can function as a medium of exchange, a stock, or an asset that maintains or depreciates value. Daly emphasized the need to define these terms in order to better understand the role of cryptocurrencies in the financial landscape.

Distinguishing Cryptocurrencies from Gold

Daly also drew a distinction between cryptocurrencies and gold, stating that while they may share some similarities, they are not equivalent. She echoed the views of Federal Reserve Chairman Jerome Powell, who has also expressed skepticism about the readiness of cryptocurrencies to become a form of currency.

Implications for the Future of Cryptocurrencies

Daly’s comments come as some cryptocurrency enthusiasts argue that they should be considered a form of currency at this stage in their development. However, Daly’s views suggest that regulators and financial experts are taking a more cautious approach, recognizing the complexity and uncertainty surrounding cryptocurrencies.

Source: M.theblockbeats.info

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