Fed’s Waller Shrugs Off Bitcoin Volatility, Says Crypto Crashes Don’t Threaten Banks

Federal Reserve Governor Christopher Waller downplayed the risks associated with bitcoin and broader crypto markets, asserting that digital assets are largely disconnected from the traditional financial system. Speaking at an event, Waller characterized crypto volatility, including price drops, as common occurrences—part of the "game"—and noted that current price levels are high compared to historical benchmarks. He dismissed concerns that crypto crashes pose immediate threats to banks or the payments system, arguing that the ecosystem is separate enough that major declines do not cause spillovers into traditional finance. Waller compared a blockchain transaction to buying an apple, viewing underlying technologies like blockchains and smart contracts as tools, not threats. However, he acknowledged that crypto is intersecting more with mainstream finance through innovations like 24/7 trading capabilities, which are forcing traditional institutions to improve their own systems. Waller also noted that regulatory clarity in Washington is stalled, which may be contributing to cooling market enthusiasm, and advised skeptical investors simply not to participate if they dislike the volatility.

(Source：Bitcoin Magazine)