Crypto Gets a Frosty Reception from Federal Reserve Governor

• Christopher Waller is the Federal Reserve board governor and he recently expressed his concerns about crypto assets in an interview.
• He believes that most digital currencies are “speculative” and have no real value.
• Waller also mentioned the lack of regulation in the space, as well as the “spillover” into the standard financial system due to a limited number of interconnections between the two.

Christopher Waller Really Doesn’t Care for Crypto

Christopher Waller is the Federal Reserve board governor. In a recent interview, he made it clear he’s not a fan of the digital currency space, nor does he think crypto assets have any real value to them.

Concerns About Crypto

In the discussion, Waller said that most digital currencies were „speculative“ and comparable to baseball cards. He also said that the only value they have stems from the belief of others.

„If you buy crypto assets and the prices go to zero at some point, please don’t be surprised, and don’t expect taxpayers to socialize your losses,“ Waller said.

Waller stated that while he’s supportive of innovation in finance systems, he is concerned about banks engaging in activities that present heightened risk of fraud or scams. He also mentioned inaccurate or misleading financial disclosures.

The Lack Of Regulation

Waller commented on the lack of regulation in crypto markets which has led to shady enterprises operating without proper KYC (know your customer) protocols.

„Spillover“ from Crypto Industry

He also commented on what he calls „spillover“ from cryptocurrency industry into traditional finance system due to limited connections between them.

Warren Buffett’s Views On Crypto

Wallers views seem similar to Berkshire Hathaway head Warren Buffett who has been vocal against cryptocurrency calling bitcoin „rat poison squared“.