Cryptocurrencies still have a 'big deal' problem with exchange rates, Fed's Bullard says: Instability in exchange rates remains the biggest obstacle toward more widespread cryptocurrency acceptance, St. Louis Fed President James Bullard said Monday.

Bitcoin and its growing legion of competitors have been on a highly volatile ride, particularly over the past year and a half or so.

t one point in 2017, one bitcoin was going for nearly $20,000, and is now trading for less than half that.

Such a lack of uniformity has kept speculators heavily active in crypto trading. However, Bullard said it likely also will drive away consumers and businesses.

"The exchange rate problem is a big deal, because you don't know how they're going to trade against each other," he told CNBC's Seema Mody from the sidelines of the Consensus conference in New York.

"That happens even with big-time currencies like the yen and the dollar."

Many of those major nation-state currencies haven't experienced anything close to what's happened with cryptos.

However, some, like Venezuela and Zimbabwe have, due in large part because they didn't control the issuance of their currencies and ended up with hyperinflation, Bullard said.

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