Fed Governor Warns Crypto Prices Could Drop to Zero – Says ‘Don’t Expect Taxpayers to Socialize Your Losses’ – Markets and Prices
Federal Reserve Governor Christopher Waller has warned that crypto prices could eventually drop to zero. “Please don’t be surprised and don’t expect taxpayers to socialize your losses,” stressed the Fed governor.
Crypto prices could go to zero, Fed official warns
Federal Reserve Governor Christopher J. Waller warned of the dangers of investing in cryptocurrency.
“To me, a crypto asset is nothing more than a speculative asset, like a baseball card. If people believe that others will buy it from them at a positive price in the future, then it is trading at a positive price today,” he said. “If not, its price will go to zero.”
He added: “If people want to hold an asset like this, do it. I wouldn’t do it, but I don’t collect baseball cards either.” However, the Fed governor warned:
If you buy crypto assets and the price eventually goes to zero, please don’t be surprised and don’t expect taxpayers to socialize your losses.
“Several prominent crypto-related companies have filed for bankruptcy, including payment platforms, exchanges, crypto lenders, and hedge funds,” Waller noted, adding that both retail and institutional investors have suffered from the crypto winter.
The Fed Governor continued to express concern about banks and other financial intermediaries involved in crypto activities “which pose increased risks of fraud and fraud, legal uncertainties, and the proliferation of inaccurate and misleading financial statements.” He stressed that banks considering getting involved in crypto activities must comply with “know your customer” and “anti-money laundering” requirements.
Waller added:
So far, the impact of the stress in the crypto industry on other parts of the financial system has been minimal.
The Fed official is also skeptical about central bank digital currencies (CBDCs). Last October, he said he was “not a big fan” of the Fed issuing the digital dollar but was open to someone convincing him that “this is something really valuable.”
What do you think of Fed Governor Waller’s crypto statements? Let us know in the comment section below.
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Source: Crypto News Deutsch
