New York Fed: Bitcoin is Another Example of Fiat Money

 

The Fed Reserve Bank of New York says BTC isn’t a new kind of currency, though, its mechanism to implement online transactions without 3rd parties is completely new.

As the latest paper of the NY Fed states, the conception that the first crypto asset is a new class of money, is a confusion.

A Financial Economist of the New York Fed Research & Stats Group, & Antoine Martin, a senior VP of the Group note that Bitcoin can be considered as a money, though it’s not a new type of currency. On the other hand, it’s a new type of exchange mechanism.

As it’s been claimed, Bitcoin is considered another fiat currency. Though, rather than fiat money that is issued by central banks, it doesn’t have a legal tender status.

In the main, BTC & altcoins aren’t considered a new class of money, as other fiat currencies have existed for quite some time. What about stablecoins, they are considered the most recent incarnation of currencies backed with the value of an asset.

As it’s specified, the main inventive part of crypto assets is they provide fundamentally different exchange mechanism, which provides an option to transfer any kind of currency without a third party.

 

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