Fed Governor Compares Crypto to Baseball Cards

Fed Governor Christopher Waller said crypto assets are highly speculative. According to him, if a crypto-asset goes bankrupt, investors must bear the losses. He adds that US taxpayers should not be relied upon for compensation.

The Daily Hodl announcing on Twitter that the Fed Governor had reservations about cryptos.

A FED increasingly hostile to crypto-currencies?

The Federal Reserve (FED) has never been particularly friendly with the crypto industry. Any opportunity is apparently good to denigrate digital assets. We learned by Daily Hodl that the Governor of the FED has made unflattering remarks with regard to cryptocurrencies. ” To me, a crypto-asset is nothing more than a speculative asset, like a baseball card. If people believe that others will buy it in the future at a positive price, then it will trade at a positive price today. Otherwise, its price will drop to zero. If people want to own such an asset, then go for it. I wouldn’t, but I don’t collect baseball cards either. However, if you buy crypto assets and the price drops to zero at some point, don’t be surprised and don’t expect taxpayers to socialize your losses. ” did he declare.

Should we completely ban cryptocurrencies?

In fact, Waller gives some credence to crypto-assets. For example, he thinks that smart contracts could increase business productivity. They could even be very useful to businesses outside of the crypto-sphere. It is not completely opposed to crypto investing. However, he warns that banks should invest in it with caution and higher standards.

He says to himself ” concerned about the activities of banks which present an increased risk of fraud and scams, legal uncertainties and the prevalence of inaccurate and misleading financial declarations. “.

The Fed and the SEC seem to be waging a cold war against the crypto industry. Many fines and limitations are imposed on banks that offer crypto services. Lawsuits are filed and bans are even issued against players in the crypto-sphere. But don’t the two sectors ultimately serve the same purpose, which is the financial fulfillment of the consumer?

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