News

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

Fed Governor Waller Claims The Crypto Economy Is Divided Into Several Components With Different Possibilities 3

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

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

1 hour ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

4 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

6 hours ago

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

7 hours ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

10 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

13 hours ago

This website uses cookies.