Hackles might rise when a major figure in the Federal Reserve declares an entire asset class to be “nothing more than a speculative asset, like a baseball card.” That’s just what the Federal Reserve Board Governor Christopher Waller pointed out in remarks on Friday. Bitcoin itself (BTC-USD) dropped in Friday afternoon’s trading, though not by much, suggesting that the news may not have come as such a surprise.
Waller amped up the doom factor substantially from there. He declared that those who put money into cryptocurrency should not only not “…be surprised…” to lose everything but should also not “…expect taxpayers to socialize your losses.” However, Waller did visibly soften on a couple points. He suggested that it was time to look into blockchain’s use outside of cryptocurrency. He further noted that a central bank digital currency in the United States didn’t seem like a worthwhile concept. However, he noted that Congress would ultimately be responsible for such a move.
Waller then encouraged those involved to ensure the risks associated with cryptocurrency were minimal. Further, regulators needed to refrain from “unduly” limiting the future of cryptocurrency development and operations.
Bitcoin, meanwhile, has slipped a bit in recent trading. However, it’s still well above the level it spent most of the last three months trading at. Bitcoin would have to drop over $4,000 per coin just to reach the January lows.
