Even the New York Fed Doesn’t Know the Meaning of Fiat Money
There are many labels one could attribute to Bitcoin and other cryptocurrencies. A recent statement by the New York Fed, however, has the crypto community up in arms.
Governments and regulators are often criticized for not understanding cryptocurrencies.
The New York Fed Lost the Plot
Nor do they show that much effort to educate themselves on the matter either.
A recent comment by the New York Fed illustrates this point perfectly.
The agency claims how Bitcoin is just another form of fiat money.
A very interesting, albeit completely incorrect statement.
Fiat currency has ties to governments and banks, whereas Bitcoin doesn’t need archaic institutions to operate.
Once the post was published, negative criticism started coming down quickly.
While the article is an editorial, it further highlights how ignorant these “experts” are regarding Bitcoin.
One can use Bitcoin as fiat currency, although in far more limited fashion.
That is, in a sense that it is a peer-to-peer form of exchanging value for goods and/or services.
Moreover, some people feel as if the New York Fed is now creating its own narrative by redefining words.
When even financial institutions can’t make any more sense of the current financial ecosystem, it is perhaps time to replace it with something else entirely.