FED PRESIDENT LACKER: I Don't See Why The Fed Would Want To Stop Bitcoin

Growth in China — now put on hold — wasn’t the only reason for Bitcoin’s insane surge in November.

The U.S. Senate also held two days’ worth of hearings on the digital currency, giving it a mostly favourable.

Meanwhile, Fed Chairman Ben Bernanke submitted a letter to the Senate stating digital currencies like Bitcoin “may hold long term promise.”

But opportunities for the media to directly and publicly ask a regulator about the government’s stance on Bitcoin have been limited.

Until this morning.

On CNBC’s “Squawk Box,” host Joe Kernen got Richmond Fed President Jeffrey Lacker to acknowledge that at this point, the Fed has no interest in meddling with Bitcoin.

Here’s the full exchange:

Lacker: “It’s private money. They’re going to have trouble gaining market share if its value’s going to fluctuate so much. But it’ll be interesting to watch.

Kernen: “But what is the position of the fed from a policy perspective if there is one? Or what do you think the position of the U.S. government should be on Bitcoin, or other virtual currencies?”

Lacker: “That’s — for what they’re doing, it’s a free market and I don’t see why they have an interest in stopping it — at this point.”

Bitcoin prices are back up to more than $US680, after hovering around $US600 for most of the weekend.

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