Fed's Bostic Has a Message on Cryptocurrencies: `Don't Do It'

(Bloomberg) -- Federal Reserve Bank of Atlanta President Raphael Bostic has a short message about cryptocurrencies like bitcoin: Avoid!

“Don’t do it,’’ Bostic told an audience in Atlanta Tuesday at the Hope Global Forums annual meeting, which promotes financial inclusion, young entrepreneurs and affordable housing. “They are speculative markets. They are not currency. If you have money you really need, do not put it in these markets.’’

Bostic, who took over as Atlanta Fed president last June, was more blunt but reflected a general skepticism among Fed policy makers toward cryptocurrencies. In January, Federal Reserve Bank of Chicago President Charles Evans said bitcoin is “not money-like at the moment,’’ adding “you’re swimming with all the sharks in the world because of all the anonymity.’’

Federal Reserve Bank of Minneapolis President Neel Kashkari said in December: “I think of it a little bit like Beanie Babies. If they were jumping in price by 1,000 times, or $10,000 each, what would we make of Beanie Babies being priced where they are?”

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