Recently, Federal Reserve Board governor Christopher Waller spoke about cryptocurrency, saying crypto will eventually resolve its issues.
During a speech at the Global Interdependence Center Conference, Waller said he predicts the crypto world will get its act together to resolve issues with transparency and risk management. “They’ll get there, and when that happens, there’s a lot more ability to think about interacting crypto into the traditional financial sector. To me, a crypto asset is nothing more than a speculative asset, like a baseball card. If people want to hold such an asset, then go for it. I wouldn’t do it, but I don’t collect baseball cards, either.”
Another portion of his speech found Waller talking about banks being involved in crypto amid risks of scams and fraud. “I’m supportive of prudent innovation in the financial system while at the same time concerned about banks engaging in activities that present a heightened risk of fraud and scams, legal uncertainties, and the prevalence of inaccurate and misleading financial disclosures,” said the Federal Reserve Board governor.
Waller then spoke about protections for banks, saying, “a bank engaging with crypto customers would have to be very clear about the customers’ business models, risk-management systems, and corporate governance structures to ensure that the bank is not left holding the bag if there is a crypto meltdown.”