Fed's Daley: Cryptocurrencies are complex and not yet qualified as "money"

PANews reported on December 31 that San Francisco Fed President Mary Daly said that cryptocurrencies should be considered an independent asset class rather than being lumped together with gold. She believes that cryptocurrencies are complex and do not yet qualify as “money.” Daly noted that cryptoassets need to define their purpose, whether as a medium of exchange, a speculative asset, or a store of value, but their volatility and demand-driven value characteristics are significantly different from the stability of traditional currencies.

Daly's views differ from those of Federal Reserve Chairman Jerome Powell. Powell has previously compared Bitcoin to virtual gold rather than a competitor to the U.S. dollar, but both men believe the cryptocurrency does not currently qualify as a currency.