The US Federal Reserve Bank, St Louis chapter, has made an announcement declaring their intention to track the prices of four leading digital currencies using their research database. The database, known as the Federal Reserve Economic Data (FRED), will keep tabs on the market values of Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
The data regarding the prevailing prices of the four cryptocurrencies will be sourced from Coinbase, one of the world’s most recognized cryptocurrency exchange platforms. In addition to the current prices, Coinbase will also furnish FRED with the historical performance of the four digital assets. Reportedly, the data will go back to as early as four years ago.
While the announcement was abrupt, this development was not entirely surprising. The St. Louis central bank is one of the few public institutions that have embraced the concept of digital currencies, and have even dedicated vast resources on the impact of such on the national and worldwide economies.
Lately, the bank’s president, James Bullard, raised concerns that the massive proliferation of virtual currencies can lead to the fracas in the determination of exchange rates. James made the comments during the CoinDesk Consensus meeting in May and referenced the chaos that occurred during the civil war. Also, in a recent interview, the president was quoted saying that he sees Bitcoin as a potential threat to fiat currencies, including the US dollar.
In 2014, the then VP of the St Louis central bank organized a workshop that focused on Bitcoin. Interestingly, the VP said that the technology would take over, and further warned that enterprises that fail to embrace would face the risk of extinction.
Unlike the St. Louis Branch, other central banks seem to have a distant relationship with cryptocurrencies the Atlanta branch president is wary of investing in the crypto space, mainly because he sees it as a bubble. Likewise, the San Francisco boss says that the cost of mining Bitcoin makes the process uneconomic.