• Christopher Waller is the Federal Reserve board governor and expressed his views on cryptocurrencies in a recent interview.
• He believes that digital currencies are “speculative” and their value only comes from the belief of others, not their actual worth.
• Waller is concerned about the lack of regulation in the arena and he feels that crypto exchanges need to be more forceful about KYC protocols to ensure customer safety.
Christopher Waller’s Concerns About Crypto
Christopher Waller, Federal Reserve board governor, recently expressed his views on cryptocurrencies in an interview. He believes that digital currencies are “speculative” and their value only comes from the belief of others, not their actual worth. Moreover, he is concerned about the lack of regulation in this area and feels that crypto exchanges should be more forceful with KYC protocols to ensure customer safety.
Waller Compares Crypto Assets To Baseball Cards
In his discussion, Waller likened crypto assets to baseball cards by saying if people buy them and prices go to zero at some point then they shouldn’t be surprised nor expect taxpayers to socialize losses. While supportive of innovation in financial services systems, he also expressed concern for banks engaging in activities with a heightened risk for fraud or scams due to inaccurate or misleading financial disclosures.
The Impact Of Warren Buffett’s Disdain For Cryptocurrency
Warren Buffett (head of real estate giant Berkshire Hathaway) has made it clear over time that he doesn’t have much faith in bitcoin or its digital counterparts – so much so that he called bitcoin „rat poison squared“ at one point. This mindset has seemingly spilled over into the public’s perception of cryptocurrency as well given its volatility and price crashes experienced by traders recently.
Crypto Ecosystem Needs Interconnections With Banking System
Waller believes there needs to be more interconnections between the crypto ecosystem and banking system if these services are going to taken seriously because right now there is a limited number of such connections occurring which could lead to even more problems down the line if not addressed properly soon enough.
Conclusion
It is clear through Chrisopher Waller’s comments that he has no interest in seeing cryptocurrency succeed unless proper regulations are implemented first – something Warren Buffett agrees with as well given his disdain for digital currency assets. Therefore it will be important for those involved with cryptocurrency exchanges or related businesses to make sure they implement proper KYC protocols and get all necessary information about customers before allowing them access just like any other legitimate financial service would do as well.
