Technology

Fed officials: Crypto rout not a systemic concern

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St. Louis Fed President James Bullard speaks about the U.S. economy during an interview in New York February 26, 2015. REUTERS/Lucas Jackson

WASHINGTON, May 19 (Reuters) - The steep sell-off in cryptocurrencies including Bitcoin does not pose broader risks to the financial system, two Federal Reserve policymakers saidon Wednesday.

"By itself I don't see that as a systemic concern at this point," St. Louis Federal Reserve president James Bullardsaid. "We are all quite aware that crypto can be very volatile."

Speaking to Bloomberg TV, Atlanta Fed President Raphael Bostic made a similar observation.

"There's a lot of volatility in it, but right now it's not at a scale and it doesn't have a reach into the economy that has systemic implications for us," Bostic said. "It's not something I really incorporate very much into how I think about where our policy should be."

Reporting by Howard Schneider

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