Central banks are the prime movers of crony capitalism. Them getting into the virtual currency business is a bad thing but probably inevitable.
While his posts were not official comments from the Fed, they have drawn great interest in the larger cryptocurrency community. In early May, he joined a panel at a major cryptocurrency conference, Consensus 2016 in New York City, and he expounded on his views a bit more. “From the perspective of a central bank, bitcoin and currencies of that ilk are essentially a foreign currency,” he told the crowd during the “Digital Cash for Central Banks” panel, explaining that every nation worries about how its currency gets priced relative to other countries’ (as evidenced by the paper from Barbados, linked above).
“The great advantage of this is the central bank is in a position to fix the exchange rate between the Fedcoin and the U.S. currency,” he said. “It’s just a different denomination, really … The composition of the money doesn’t really matter to the money supply.”