Fed Governor Waller Claims The Crypto Economy Is Divided Into Several Components With Different Possibilities
Key Points:
- Christopher Waller, the governor of the US Federal Reserve Board, stated at a conference audience on February 10 that the components that make up the bitcoin ecosystem are not all equal. He identified three components of the ecosystem, and he had definite preferences among them.
- Waller has previously stated his skepticism of a digital currency issued by the U.S. central bank.
Christopher Waller, the governor of the US Federal Reserve Board, stated at a conference audience on February 10 that the components that make up the bitcoin ecosystem are not all equal. He identified three components of the ecosystem, and he had definite preferences among them.
Waller concentrated on the more extensive uses of cryptography. The use of distributed ledger technology to solve “a wide range of data management difficulties” is currently the subject of research. Tokenization in combination with data vaults can guarantee privacy without encouraging money laundering, and smart contracts can be used with non-crypto assets to prevent money laundering. Waller continued, saying:
The Global Interdependence Center featured Waller at its conference on “Digital Money, Decentralized Finance, and the Puzzle of Crypto.” He took into account blockchain technology, cryptocurrency assets, and trade technology such as tokenization and smart contracts individually.
“While these technological developments are still in their infancy, they have potential applications beyond the crypto ecosystem that could lead to substantial productivity enhancements in other industries.”
The bulk of Waller’s talk was devoted to crypto assets
He compares crypto assets, which he said have no intrinsic value, to a commodity – corn – and used economic theory to explain that intrinsically valueless objects may be traded at a positive price due to the “the social contrivance of money.” But there is an inherent problem, he added:
“What if one day, beliefs change and I no longer believe that someone will pay me for this object in the future? Then I clearly shouldn’t pay anything for it today, so its price goes to zero. […] However, if you buy crypto-assets and the price goes to zero at some point, please don’t be surprised and don’t expect taxpayers to socialize your losses.”
Even sophisticated, institutional investors have lost money in the crypto winter, Waller noted.
In order to ensure that regulation would limit the risks of crypto assets without inhibiting innovation of “the good elements of the crypto ecosystem,” he added, it is important to have a clear understanding of the distinctions between the various components of the crypto ecosystem.
Waller has previously stated his skepticism of a digital currency issued by the U.S. central bank.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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Fed Governor Waller Claims The Crypto Economy Is Divided Into Several Components With Different Possibilities
Key Points:
- Christopher Waller, the governor of the US Federal Reserve Board, stated at a conference audience on February 10 that the components that make up the bitcoin ecosystem are not all equal. He identified three components of the ecosystem, and he had definite preferences among them.
- Waller has previously stated his skepticism of a digital currency issued by the U.S. central bank.
Christopher Waller, the governor of the US Federal Reserve Board, stated at a conference audience on February 10 that the components that make up the bitcoin ecosystem are not all equal. He identified three components of the ecosystem, and he had definite preferences among them.
Waller concentrated on the more extensive uses of cryptography. The use of distributed ledger technology to solve “a wide range of data management difficulties” is currently the subject of research. Tokenization in combination with data vaults can guarantee privacy without encouraging money laundering, and smart contracts can be used with non-crypto assets to prevent money laundering. Waller continued, saying:
The Global Interdependence Center featured Waller at its conference on “Digital Money, Decentralized Finance, and the Puzzle of Crypto.” He took into account blockchain technology, cryptocurrency assets, and trade technology such as tokenization and smart contracts individually.
“While these technological developments are still in their infancy, they have potential applications beyond the crypto ecosystem that could lead to substantial productivity enhancements in other industries.”
The bulk of Waller’s talk was devoted to crypto assets
He compares crypto assets, which he said have no intrinsic value, to a commodity – corn – and used economic theory to explain that intrinsically valueless objects may be traded at a positive price due to the “the social contrivance of money.” But there is an inherent problem, he added:
“What if one day, beliefs change and I no longer believe that someone will pay me for this object in the future? Then I clearly shouldn’t pay anything for it today, so its price goes to zero. […] However, if you buy crypto-assets and the price goes to zero at some point, please don’t be surprised and don’t expect taxpayers to socialize your losses.”
Even sophisticated, institutional investors have lost money in the crypto winter, Waller noted.
In order to ensure that regulation would limit the risks of crypto assets without inhibiting innovation of “the good elements of the crypto ecosystem,” he added, it is important to have a clear understanding of the distinctions between the various components of the crypto ecosystem.
Waller has previously stated his skepticism of a digital currency issued by the U.S. central bank.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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