Crypto Assets Are Purely Speculative, Claims Member of FED’s Board of Governors
Christopher J. Waller is a member of the Federal Reserve's Board of Governors, a high-ranking position in the US central bank. Recently, he shared his views on crypto assets in a speech.
Views on crypto assets
Waller believes that the value of crypto assets is driven purely by belief and has no intrinsic value.
He compares them to baseball cards, which also have no intrinsic value and depend on the buyer’s belief that others will purchase them in the future.
However, Waller recognizes the potential of the technologies related to crypto assets, such as smart contracts and tokenization, to lead to productivity enhancements in industries outside of the crypto world. He notes that tokenization could be used to facilitate the of trade objects while preserving identity protection.
Risk management
While Waller is not opposed to individuals making risky investments in crypto, he believes banks must operate to a higher standard.
He supports innovation in the financial system but is also concerned about the potential for fraud, scams, legal uncertainties, and false financial disclosures.
Waller emphasizes the importance of banks being clear about the customer’s business models, risk management systems, and governance structures to ensure that they are kept from holding the bag in case of a crypto meltdown.
READ MORE: What is the Impact of Central Bank Digital Currencies (CBDCs)?
Conclusion
In conclusion, Waller views crypto assets as speculative assets with no intrinsic value and highlights the importance of risk management in the crypto industry. He recognizes the potential of technology related to crypto assets. Waller also warns of the potential dangers and uncertainties in the sector.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
