Louis Federal reserve president James Bullard yesterday warned that instability in exchange rates is the biggest obstacle to widespread cryptocurrency adoption.
That volatility has seen the Bitcoin price climb to almost $20,000 per coin late last year before more than halving just a couple of months later.
You've got this kind of special problem of who's going to issue the currency and what are those promises about future issuance and can you really maintain the credibility of those promises. If you can't, the value of your currency is going to zero the same way the Venezuelan bolivar has.
Bullard also played down the possibility the U.S. Fed will introduce its own digital currency.
