Christopher Waller (a Federal Reserve Board governor) said that crypto industry parts should be encouraged and allowed to prosper as long as they don’t pose a threat to the U.S. financial system. Waller also shared an optimistic outlook that the industry would overcome its problems.
Waller agreed with other U.S. regulators and said that they have been successful in protecting the financial system against the woes of the cryptocurrency sector. Friday, Waller stated that the fallout from FTX’s collapse and other firm failures hasn’t caused major damage to the Fed’s system.
“The limited number of interconnections that exist between the banking system and the crypto ecosystem may explain the lack of spillovers,” he stated at the Global Interdependence Center’s event in California.
“I’m supportive for prudent innovation in financial systems, while at the Samsung concern about banks engaging in activities which present a higher risk of fraud, scams, legal uncertainties and the proliferation of inaccurate financial disclosures.” To avoid being left in the dust if crypto crashes, a bank that is interested in participating in crypto would have to know the details of its customers’ business models, risk management systems, and corporate governance structures.
Waller was nominated to his position by the former President Donald Trump. He said that he believes that digital assets will mature and solve its governance, transparency, and risk management issues.
“They’ll get there,” he said, adding that he isn’t in a hurry to get involved.
He stated that a crypto-asset is “nothing more than a speculation asset, like a card.” “If someone wants to hold such assets, then go for them. It’s not something I would do, but I don’t collect baseball cards.
Waller also doesn’t believe that letting the Fed create a central banking digital currency is a good idea. Waller stated that no one has ever made a compelling case for a digital currency being able to solve the problem.
“I don’t see a huge value gain from doing it,” he stated, noting that he does not believe it is the role for the seven Fed governors elected to make decisions, and that Congress has yet to give him orders.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
