![\"Federal](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2021\/04\/kaplan-bitcoin-768x432.jpg\")
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The Federal Reserve Bank of Dallas president says bitcoin is clearly \u201ca store of value.\u201d Emphasizing the differences between cryptocurrencies, like bitcoin, and central bank digital currencies, he said the latter \u201cwon\u2019t necessarily be a store of value.\u201d<\/strong><\/p>\n The president of the Federal Reserve Bank of Dallas, Robert Kaplan, talked about bitcoin and central bank digital currencies (CBDCs) Friday at the Texas A&M Bitcoin Conference 2021 hosted by Mays Business School.<\/p>\n Firstly, Kaplan explained that he would distinguish between bitcoin and central bank digital currencies. \u201cI would differentiate between a cryptocurrency, like bitcoin, and the discussions that are being had about digital currency,\u201d such as the digital yuan experiment in China, he described.<\/p>\n He proceeded to explain that the challenge on bitcoin is \u201chow widely it will be adopted.\u201d The Federal Reserve Bank of Dallas chief elaborated:<\/p>\n Right now, it\u2019s clear it\u2019s a store of value.<\/p>\n<\/blockquote>\n \u201cIt obviously moves a lot in value,\u201d he continued. \u201cThat may keep it from spreading too far as a medium of exchange and wide adoption but that can change and that will evolve.\u201d<\/p>\n The Fed bank chief also confirmed that he and his team \u201chave studied intensely and will keep studying bitcoin and other cryptocurrencies.\u201d<\/p>\n He then talked about central bank digital currencies, emphasizing:<\/p>\n The discussions around the world on digital currency are slightly different in that a digital currency won\u2019t necessarily be a store of value.<\/p>\n<\/blockquote>\n \u201cIf you\u2019re worried about the value of underlying currency, digital currency is likely to be, for example in China, tied to the value of the underlying,\u201d he detailed, adding that it\u2019s also \u201ca way of ease of payment, domestic payments first, getting money to where it\u2019s needed.\u201d<\/p>\n <\/ins> <\/ins> <\/p>\n Kaplan further opined: \u201cIn some cases, you could argue in China it\u2019s a way to monitor flows \u2026 and then ultimately how far will this go, and there\u2019s been speculation about global payments and the implications.\u201d<\/p>\n As for the digital dollar, Federal Reserve Chairman Jerome Powell said in February that the Fed is actively studying the possibility of issuing a digital dollar. He emphasized<\/a> that it is a \u201cvery high priority project\u201d for the Fed. Meanwhile, the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology (MIT) plan to unveil<\/a> at least two prototypes of a digital dollar in the third quarter of this year.<\/p>\nFed Bank Chief Calls Bitcoin a Store of Value<\/h2>\n
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