Member of the Federal Reserve Board of Governors Christopher J. Waller stated his viewpoint on cryptocurrencies. It did not come as a bombshell. The official did not pick cautious words but said openly that cryptocurrencies are useless and blockchain technology is totally overrated. In his opinion, it is the right time to admit the fact.
“These things aren’t payment instruments at all,” Waller noted during the online conference on digital currencies arranged by the Bank for International Settlements (BIS). “My view is these things are just electronic gold. They’re forms of storage carrying wealth across time.” “I think blockchain is totally overrated,” the Fed Governor explained. Christopher Waller slammed the crypto market as a whole. At the same time, he did not go into detail on why he made such assessment and conclusions. Interestingly, his personal vision of the crypto market and digital tokens does not coincide with the official stance of the Federal Reserve where he serves nowadays. The policymaker pointed out that his line of reasoning on advantages and disadvantages of central bank digital currencies (CBDCs) is purely personal.
Notably, the US monetary authorities are not so skeptical about digital tokens as Mr. Waller. US President Joe Biden ordered federal agencies to investigate a few issues on using crypto. The financial watchdog has to dig into pros and cons of the digital dollar. Experts reckon that if the central bank greenlights the digital dollar as the mainstream payment means, consumers will be charged lower transaction fees and will gain broader access to the financial system.
