Fed’s Waller says crypto is risky, Harker sees continued demand | – #Feds #Waller #crypto #risky #Harker #sees #continued #demand
February 10-u (Reuters) – Federal Reserve Governor Christopher Waller issued a pair of warnings for those dealing in cryptocurrency assets on Friday, telling buyers they could lose their investments and to protect banks from bad actors and risks to the financial system.
A few hours later, speaking at the same conference, Philadelphia Fed President Patrick Harker presented survey data showing that cryptocurrency will remain in demand despite these risks.
In recent months, the cryptocurrency industry has seen huge losses for investors, the collapse of cryptocurrency exchanges, lenders and payment platforms, and FTX founder Sam Bankman-Fried vs. crime high level including his work court shaken by his work. USA including the central bank USA regulators have told banks they need to be more vigilant about fraud risk.
In a speech at the Center for Global Interdependence conference, Waller said the spillover to the broader financial system has so far been “minimal” and that it is critical that regulators ensure they mitigate financial stability risks associated with stress in the crypto industry.
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At the same time, he said, banks considering dealing with cryptocurrency should “know your customer” and meet anti-money laundering requirements and ensure that customers follow business models and risk management systems to ensure that bank “don’t keep the owner”. bag” cryptocurrency collapses
Waller had a more stark warning for cryptocurrency traders: cryptocurrencies are risky as assets with no intrinsic value.
“If people want to own an asset like that, then go for it,” Waller said. “However, if you are buying cryptocurrency and the price drops to zero at some point, please don’t be surprised and tax don’t expect payers to publicize your losses.”
Still, at least some Americans are sold on the idea, according to data from Harker’s October poll. The survey found that cryptocurrency buyers are predominantly male, younger and wealthier than the average American, and black and Hispanic consumers are disproportionately represented.
“The strength of investment and expertise as a reason to participate in the market has remained stable and the most likely to acquire cryptocurrencies social-economic groups did not change significantly,” said Harker. “These examples show that cryptocurrencies will remain in demand by certain consumers despite the recent crypto winter.”
Still, only 40% of cryptocurrency holders surveyed in October said they planned to buy more – a similar survey last Januaryflour more than half, Harker said.
Reporting by Ann Saphir; Edited by Paul Simao and Andrea Ricci
Our standards: Thomson Reuters Trust Principles.
2023-02-13 03:55:01
Source – reuters
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