{"id":17561,"date":"2023-02-12T23:50:20","date_gmt":"2023-02-12T23:50:20","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/fed-governor-warns-crypto-prices-could-fall-to-zero-says-dont-expect-taxpayers-to-socialize-your-losses-markets-and-prices-bitcoin-news\/"},"modified":"2023-02-12T23:50:20","modified_gmt":"2023-02-12T23:50:20","slug":"fed-governor-warns-crypto-prices-could-fall-to-zero-says-dont-expect-taxpayers-to-socialize-your-losses-markets-and-prices-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/fed-governor-warns-crypto-prices-could-fall-to-zero-says-dont-expect-taxpayers-to-socialize-your-losses-markets-and-prices-bitcoin-news\/","title":{"rendered":"Fed Governor Warns Crypto Prices Could Fall to Zero \u2014 Says ‘Don’t Expect Taxpayers to Socialize Your Losses’ \u2013 Markets and Prices Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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U.S. Federal Reserve Governor Christopher Waller has warned that crypto prices could fall to zero at some point. \u201cPlease don\u2019t be surprised and don\u2019t expect taxpayers to socialize your losses\u201d when that happens, the Fed governor stressed.<\/strong><\/p>\n

Crypto Prices Could Go to Zero, Fed Official Warns<\/h2>\n

Federal Reserve Governor Christopher J. Waller warned about the danger of investing in cryptocurrency on Thursday at the Global Interdependence Center Conference on \u201cdigital money, decentralized finance, and the puzzle of crypto.\u201d<\/p>\n

\u201cTo me, a crypto asset is nothing more than a speculative asset, like a baseball card. If people believe others will buy it from them in the future at a positive price, then it will trade at a positive price today,\u201d he described. \u201cIf not, its price will go to zero.\u201d<\/p>\n

He added: \u201cIf people want to hold such an asset, then go for it. I wouldn\u2019t do it, but I don\u2019t collect baseball cards, either.\u201d However, the Fed governor warned:<\/p>\n

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If you buy crypto assets and the price goes to zero at some point, please don\u2019t be surprised and don\u2019t expect taxpayers to socialize your losses.<\/p>\n<\/blockquote>\n

\u201cSeveral prominent crypto-related firms have filed for bankruptcy, including payment platforms, exchanges, crypto lenders, and hedge funds,\u201d Waller noted, adding that both retail and institutional investors have suffered from the crypto winter.<\/p>\n

The Fed governor proceeded to voice concerns about banks and other financial intermediaries engaging in crypto activities \u201cthat present a heightened risk of fraud and scams, legal uncertainties, and the prevalence of inaccurate and misleading financial disclosures.\u201d He stressed that banks considering engaging in crypto activities must meet the \u201cknow your customer\u201d and \u201canti-money laundering\u201d requirements.<\/p>\n

Waller added:<\/p>\n

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So far, spillovers to other parts of the financial system from the stress in the crypto industry have been minimal.<\/p>\n<\/blockquote>\n

The Fed official is also skeptical of central bank digital currencies (CBDCs). Last October, he said<\/a> he is \u201cnot a big fan\u201d of the Fed issuing the digital dollar but is open to having someone convince him that \u201cthis is something that\u2019s really valuable.\u201d<\/p>\n

What do you think about the crypto statements by Fed Governor Waller? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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