Important statements from the US Federal Reserve regarding gold and digital currencies:

Cryptocurrencies are not real currencies

Daly stressed that cryptocurrencies should be treated as an independent asset class, and that confusing them with gold as is currently happening in the markets is not accurate. Despite the similarities in some aspects, Daly explained that she does not see cryptocurrencies as real currencies.

She explained that cryptocurrencies, in order to become a currency, must have the characteristic of growing with the expansion of the economy, and their value should not rise only due to increased demand for them. She cited the value of the dollar, whose strength is linked to the performance of the US economy compared to other countries.

Daly’s statements were distinct from the opinion of Federal Reserve Chairman Jerome Powell, who stated earlier this month that Bitcoin is like gold, but digital. Although he ruled out the possibility of cryptocurrencies competing with the dollar, he indicated that they could be a competitor to gold as an asset.

Daly also supported Powell’s opinion that cryptocurrencies are not yet ready to be a currency in the full sense, despite some cryptocurrency supporters confirming that they have reached this stage in their life cycle.