San Francisco Fed President Views Cryptocurrency As Distinct Asset Class

According to PANews, Mary Daly, President of the Federal Reserve Bank of San Francisco, has stated that cryptocurrencies should be regarded as a separate asset class rather than being equated with gold. Daly emphasized that cryptocurrencies are complex and not yet suitable to be considered as 'currency.' She highlighted the need for crypto assets to define their purpose, whether as a medium of exchange, a speculative asset, or a store of value. However, she noted that their volatility and demand-driven value characteristics significantly differ from the stability of traditional currencies. Daly's perspective contrasts with that of Federal Reserve Chair Jerome Powell, who previously likened Bitcoin to virtual gold rather than a competitor to the U.S. dollar. Despite their differing views, both Daly and Powell agree that cryptocurrencies currently do not meet the conditions necessary to function as currency.