Fed Governor Warns Crypto Prices Could Fall To Zero – Says ‘Don’t Expect Taxpayers To Socialize Your Losses’
Federal Reserve Governor Christopher J. Waller on Thursday definitively warns about the dangers associated with investing in cryptocurrencies at the Global Integrodifference Center conference on “Digital Money, Decentralized Finance and the Enigma of Crypto,” saying that for him, a paper asset is like a baseball card. Like nothing more than a speculative asset. If people believe that others will buy it from them at a positive price in the future, it will trade at a positive price today, and if it doesn’t, it will be worth zero. He also said that if people continue to have such assets then definitely go for it and I wouldn’t say that I don’t hoard like baseball cards. However, the governor of the Federal Reserve issued a warning that if you invest in crypto assets and at some point the price drops to zero, please don’t be surprised and don’t expect the taxpayer to socialize your losses. In a series of other statements, he further added that crypto related firms have filed for bankruptcy and this includes a number of others which of course include payment platforms, exchanges, crypto lenders and hedge funds. Both retail and institutional investors are suffering from the crypto winter. The federal governor continued to express concern about banks and other financial institutions engaging in cryptocurrency-related activity, which poses a widespread risk of fraud and scams, legal uncertainties, and art and misleading financial disclosures. He stresses that banks considering engaging in crypto-related activity must meet “know your customer” and “anti-money laundering” requirements, and then adds that so far crypto The spillover from stress in the industry to other parts of the financial system has been minimal. Certainly federal officials are also skeptical of central bank digital currencies given their statement last October that they are not a big fan of the Federal Reserve issuing digital dollars but are open to someone convincing them. that “this is something that is really valuable.”
