- Federal Reserve Governor Christopher J. Waller spoke at the “Climate, Currency, and Central Banking” conference.
- He discussed the potential impact of cryptocurrency on the U.S. dollar’s dominance.
- Waller shared his views on the Fed’s potential issuance of a central bank digital currency (CBDC).
- He addressed concerns about recently approved spot bitcoin ETFs.
- Waller emphasized the strength of the U.S. dollar’s position as the world’s reserve currency.
At the “Climate, Currency, and Central Banking” conference, Federal Reserve Governor Christopher J. Waller addressed concerns about the potential impact of cryptocurrency on the dominance of the U.S. dollar. He highlighted various factors contributing to these concerns, including geopolitical tensions, the rise of digital assets, and China’s efforts to promote its currency, the yuan. Waller acknowledged the shifting payments landscape but expressed confidence in the U.S. dollar’s continued dominance, citing the prevalence of stablecoins tied to the dollar.
Fed’s Stance on CBDCs
During the conference’s Q&A session, Waller reiterated his skepticism regarding the need for a U.S. central bank digital currency (CBDC). He questioned the necessity of a CBDC to address any major market failures in the payment system, indicating a lack of compelling reasons for its implementation. Waller’s stance reinforces the Fed’s cautious approach towards adopting a digital dollar despite growing interest in CBDCs globally.
Views on Spot Bitcoin ETFs
When questioned about his perspective on recently approved spot bitcoin ETFs by the SEC, Waller maintained his previous stance on cryptocurrencies. He likened crypto-assets to speculative assets like baseball cards, emphasizing their lack of intrinsic value. While acknowledging the legitimacy of ETFs trading crypto, Waller expressed concerns about their suitability for banks and pension portfolios due to safety and soundness considerations.