Former Fed Chair Sees ‘No Point’ in Government-Issued Cryptocurrency

Few figures in the economic sphere have a reputation that precedes them as much as Alan Greenspan, the chair of the U.S. Federal Reserve from 1987 to 2006.

Now, the former Fed chief is giving his opinion on digital currencies such as Bitcoin.

Greenspan believes “there’s no point for them to do it” when it comes to central banks issuing their own digital currencies.

Bitcoin is privately and self-managed by design. No one is in charge of it.

Greenspan’s “no point” edict regarding digital currencies stems from his rationale that no other organization could grant the sovereign credit that forms the backing of a national currency.

“The fundamental sovereign credit of the United States is far in excess of anything Facebook can imagine.”

Greenspan’s reference to Facebook is due to the social media giant’s proposed cryptocurrency, Libra. 

Digital currency ‘inevitable’

Patrick Harker, Philadelphia Federal Reserve Bank president, has a slightly more nuanced opinion when it comes to digital currencies.

Harker believes it is “inevitable” that the Federal Reserve will one day issue digital currencies.

However, Harker also firmly believes that the United States doesn’t need to assume the position of a trailblazer in regard to cryptocurrency.

“Frankly, I don’t think we should be the first mover as a nation to do this,” said Harker.

Harker’s reasoning is two-fold.

His first reason is that the U.S. dollar already functions as the world’s reserve currency system.

Harker’s second reason is that he believes the technology behind cryptocurrency still needs to be appropriately vetted.

Nevertheless, he thinks a government-run cryptocurrency “is inevitable … I think it is better for us to start getting our hands around it.”

Harker readily admits that his position on digital currency is “in the minority” at the Fed.

Current Fed Chair Jerome Powell characterized the technology behind cryptocurrency as still in its “infancy,” while other officials at the Fed have said that the advantages of a central bank-issued digital currency are “not obvious.”

Recommended Articles

Make Your Kid a Millionaire With This Simple IRS Program

Individual retirement accounts (IRAs) are an excellent investment option for people who are looking to save up for retirement. Contrary to what some people think, IRAs are not just meant

Legal Cannabis Now Powerful Enough to Replace Dangerous, Addictive Painkillers

Opioid abuse and addiction is a huge issue in the United States. In addition to this, long term use of these pain killers can lead to various health problems. These are

4 Great Places to Retire Near Water

The hard reality of retirement is that most people don’t plan for it until it is too late to be implemented feasibly. Or they don’t exactingly calculate how long their

Warren Buffett Learned Everything He Knows from This One Book

Value investing is the name of a particular investment philosophy that stresses a long-term approach to investing. Rather than follow short-term trends in the market, value investing relies on thorough

Exposed: Pharmaceutical Companies Spend Over 18 Billion Annually on Gifts to Doctors

I worked in a busy family physician's office about 18 years or so ago and was astounded by how many drug reps came in and out of the office loaded

6 Secrets to Getting Hired After Age 55

Finding a new job after a certain age, especially when you are in your late 50s, can prove to be quite challenging. Older workers have a lower unemployment rate than

Before You Sign, Read the Pros and Cons of Timeshares

Timeshares are upscale vacation and recreational properties that are simultaneously owned by multiple investors. However, there is a catch. Each owner is contractually obligated to only visit and inhabit the

6 Fast-Food Facts That Will Make You Put Down That Burger

Americans are more overweight than ever before. Sedentary lifestyles and poor diet is to blame. The convenience of fast food is also a factor. Morbid obesity increases the potential for

7 Common Impulse Purchases People Regret the Most

The bane of consumerism is that people voluntarily buy things that they don’t need or want for its own sake. By some estimates nearly 80% of American consumers buy some

10 Detoxifying, Filling Foods to Help You Slim Down Without Deprivation

Fad diets are a trend that may never die, as much as most of us want them to. It’s high time we took the focus off skinny and turned to

6 Ways to Get Perfectly Legit Free Government Cash

No such thing as a free lunch. Well, as a rule, yes. But we also know that for every rule, there are exceptions. While on one hand, we must beware

A Healthier You In Just a Month With These 12 New Habits

This is a simple guide to creating a healthier you in just one month! Some of these may be difficult, but the end results of feeling great are well worth