Fed Governor Waller: Crypto is ‚Speculative‘ and ‚Risky‘
• Christopher Waller, Federal Reserve Board Governor, recently expressed his disdain for digital currencies and doesn’t think they have any real value.
• Waller is concerned that people engaging in risky assets must do so safely and quietly to avoid frauds and scams.
• Warren Buffett and Charlie Munger have also been vocal about their dislike of Bitcoin and cryptocurrency in general.
Christopher Waller Really Doesn’t Care for Crypto
Federal Reserve board governor Christopher Waller recently 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. In an interview, he said that most digital currencies were „speculative“ and comparable to baseball cards, with only the belief of others giving them worth. He urged caution when investing in such risky assets, as there is potential for frauds and scams without proper regulation.
Waller Is Concerned About Crypto
Waller is worried about banks engaging in activities that present a heightened risk of fraud and scams, legal uncertainties, or inaccurate financial disclosures. He said the lack of regulation in the crypto arena is bringing things down and exchanges must prioritize KYC (know your customer) protocols to ensure customers are who they say they are. Additionally, he commented on the record “spillover” from the crypto industry to the standard financial system due to limited connections between them both.
Warren Buffett & Charlie Munger Dislike Cryptocurrencies Too
Berkshire Hathaway CEO Warren Buffett has been known to call bitcoin „rat poison squared“ due to its volatility over recent years – crashes traders have witnessed from its November 2021 all-time high of about $68,000 per unit – as well as his business partner Charlie Munger’s dislike for cryptocurrencies in general. They feel it’s important for people not to engage in such risky investments if they don’t know what they’re doing or don’t understand how it works.
The Need For Regulation
It’s clear that stricter regulation needs to be put into place when it comes to cryptocurrencies if people are going to take it seriously moving forward. Without proper safety protocols such as KYC protocols investors could be at risk of frauds or scams which would damage trust within the crypto industry even further than what has already been done this past year alone.
Conclusion
Cryptocurrency has certainly taken some hits over recent years due to its volatility but if investors become more educated on how these assets work before investing then hopefully losses can be avoided in future years ahead with better regulations being implemented by exchanges across the world.