The chief executive officer of the Federal Reserve Bank of St. Louis stated that crypto coins are shifting the financial system of the United States by promoting unlawful activities and price volatility.
He also added that the existing situation demonstrates a move against a steady currency and towards an unstable currency such as crypto in the United States. However, it is most likely that regular consumers and businessmen will not gravitate towards such currencies. This is because in the crypto space a variety of crypto coins are used together in the same market while having different prices.
Although different currencies can be traded at the same time and this can lead to freer trades, in reality, these transfers may be considered unlawful.
Even though unknowingly, crypto coins may be guiding users by the wrong path by attempting to settle a crucial social issue that is the most efficient way to encourage monetary transactions in the market.
These remarks were made at a time when the government of the United States in trying to find the best method for responding to the new wave of crypto coins developed by large private corporations.
The Current Chair of the Federal Reserve, Jerome Powell, also commented on the situation earlier saying that Facebook’s plans to launch Libra, a new stablecoin, will not advance until the Government of the country receives answers for questions and possible issues. Both of these comments resulted in negative attention towards crypto coins and, subsequently, to price changes.