• Christopher Waller, the Federal Reserve board governor is not a fan of the digital currency space.
• Waller stated that anyone buying crypto assets should not be surprised if their prices go to zero.
• He believes that crypto exchanges need to enforce KYC protocols in order to taken seriously and reduce the risk of fraud and scams.
Christopher Waller Doesn’t Support Crypto
Christopher Waller, the Federal Reserve board governor, recently made it clear that he doesn’t think much of the digital currency space. In an interview, he noted that most crypto assets are „speculative“ and comparable to baseball cards and only have value based on belief in them. If someone buys crypto assets and their prices go to zero, he warned they shouldn’t expect taxpayers to socialize their losses.
Waller Is Concerned About Risks Involved With Crypto
Waller said he supports prudent innovation in the financial system but is worried about banks getting involved with activities that present a heightened risk of fraud and scams or legal uncertainties due to inaccurate or misleading disclosures. He also mentioned that there’s a lack of regulation in the industry which could potentially lead people into trouble as well as cause spillover from the crypto industry into standard financial systems due to limited interconnections between them both.
Warren Buffett Has Similar Opinions About Crypto
It appears Waller has taken a page from Warren Buffett’s book given his similar negative views on digital currencies like bitcoin. The head of real estate giant Berkshire Hathaway has famously called bitcoin „rat poison squared“.
Crypto Space Has Earned Its Fair Share Of Critics This Last Year
The volatility and price crashes traders have witnessed in 2021 hasn’t helped cryptocurrency win any favor either – BTC fell from its November all-time high of about $68,000 per unit and ended up at around $30,000 by February 2022.
It’s clear Christopher Waller isn’t impressed by cryptocurrency or its potential for success in the future – nor does Warren Buffett think much of it either. For those who do want to engage in risky assets involving cryptocurrency, however, it is important for them to do so safely with proper KYC protocols enforced by exchanges or related businesses if they are looking for legitimacy within this arena.