Bitcoin would likely extend losses further if Fed Chairman Jerome Powell drops hints of a gradual unwinding of stimulus programs later today.
Comments from the Fed could tell bitcoiners how committed the central bank is to staying the course on low interest rates through the rest of the year.
He estimated it will take “years rather than months” before the Fed releases a CBDC.
With a runway of a year or more before the Federal Reserve and other major central banks can launch digital currencies, bitcoin and other private cryptocurrencies could gain a foothold in electronic commerce.
"I guess if you are under 40, bitcoin is your new gold," Warsh said.
A side effect of the Fed's medicine for the pandemic-stricken U.S. economy was to create conditions ideal for the rise of cryptocurrencies.
The Federal Reserve said Thursday said it would hold U.S. interest rates at their current level, close to zero, and added qualitative criteria to govern how long it will keep up its $120-a-month bond-buying program.
Bitcoin has climbed as more big investors said it might serve as a hedge against inflation. On Wednesday prices crossed $20K for the first time.
"Qualitative" is the new "quantitative" as economists predict the Federal Reserve will move to add subjectivity to its rules on money printing.
CEO Mark Yusko said that "zombie companies" have left the Fed no choice but to devalue the dollar, prompting investors to turn to bitcoin and gold.
The potential economic impact of a shift to widespread remote working is a matter of risk management: Authorities should be mapping out scenarios.
ECB President Christine Lagarde says the impetus for a central bank digital currency could come from the need to facilitate cross-border finance.
Some speculate that if the Fed implements a digital dollar, soaring inflation will soon follow.
The statement is in keeping with economists' expectations for the U.S. central bank to take no new monetary policy actions.
Lawrence Rufrano allegedly hid his work at Stanford and blockchain startup Factom from disability benefits regulators.