Federal Reserve Governor Christopher J. Waller stated that Bitcoin and other cryptocurrencies are largely separate from the traditional financial system, and their volatility does not pose an immediate threat to the banking sector. Speaking at a global economic event, he described crypto markets as part of regular trading activity and competition rather than an entirely new financial system. Waller noted that market fluctuations have become so common they are considered “investment winters,” downplaying recent Bitcoin price declines compared to past valuations when $10,000 was seen as extraordinary.
He emphasized the clear distinction between cryptocurrencies and the conventional financial system, assuring that despite any major crypto market crises, banks and payment systems remain unaffected, with banking services continuing as usual. Waller highlighted blockchain, tokenization, and smart contracts as tools for financial system advancement, not threats, and mentioned efforts by traditional financial institutions to adopt blockchain to enable faster, cheaper global trade around the clock.
However, he underscored the need for clearer crypto regulations, assigning responsibility to Congress, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, though progress has been limited. Waller advised investors to understand crypto market volatility before investing and to avoid participation if unable to tolerate price swings, stressing that price fluctuations are an inherent part of the market.
Source: bitcoinmagazine
