Find the best broker for your trading or investing needs The Federal Reserve Bank of St. Louis has recently listed three key qualities in which it perceives bitcoin as a regular mainstream currency.
The institution is among the 12 regional reserve banks operating within the United States. Along with the Board of Governors in Washington, these regional reserve banks make up America’s central banking system.
Investopedia lists the key features, as highlighted in the article by Christine Smith, a content strategist with the St. Louis Fed.
Taking cues from a recently published research article by economists Aleksander Berentsen and Fabian Schär, the St. Louis Fed justifies its call by noting that neither bitcoin nor the dollar bills in your wallet have any intrinsic value.
Since America left the gold standard for domestic transactions in 1933 and ended international convertibility of the dollar to gold in 1971, our paper money is not backed by any real commodity of value (like gold or silver) and hence it does not have any intrinsic value. The same applies to cryptocurrencies like bitcoin, which make it similar to today’s leading fiat currencies: the U.S. dollar and the euro. Read more from investopedia.com…
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