Despite the fact that the US central bank “spent a lot of resources into understanding digital currencies and the blockchain,” Christopher Waller, an American economist and member of the Federal Reserve Board of Governors, feels blockchain technology is “completely overvalued.” Waller said CBDC white papers were similar to “infomercials” at a panel discussion on central bank digital currencies (CBDCs).
Christopher Waller: Cryptocurrency aren’t Bills Of exchange in Anyway
Gary Gorton of Yale, Hyun Song Shin of the Bank for International Settlements (BIS), and Christopher Waller of the Federal Reserve discussed blockchain technology and CBDCs in depth. “Should Central Banks Issue Digital Currencies?” was the topic of the hour-long panel debate. Waller, on the other hand, is sceptical about such technologies.
During the virtual panel, Waller noted, “These things aren’t bills of exchange at all.” “These items, in my opinion, are basically electronic treasure.” They’re kinds of wealth storage that last for a long period. Examine art and baseball cards. Look at all of this essentially useless stuff that people pay a lot of money for and then keep because they think they can sell it and recoup their investment.”
Waller went on to say that he does not believe blockchain technology is efficient and that there is just too much hype surrounding it. The governor of the Federal Reserve explained:
I believe blockchain is vastly overvalued; the point is if it is the most efficient method of accomplishing tasks. We all know that distributed ledger blockchain is one method of conducting transactions and maintaining records, however, it is inefficient.
Waller has Previously Expressed Reservations about CBDCs and Stablecoins — Christopher Waller says China’s CBDC Will not really “Intimidate the Dollar”
During a virtual meeting with members of the Cleveland Fed, Waller discussed fiat-pegged digital currencies and the application of regulations to the stablecoin economy. Waller told participants at an Official Monetary and Financial Institutions Forum (OMFIF) discussion in October that he was skeptical of the Fed issuing a CBDC or digital dollar prior to the Cleveland Fed virtual conference statements.
Waller reaffirmed his doubts about the Fed’s need to release a CBDC during a virtual conversation on central banking and digital currencies. He is yet to be convinced that a central bank digital currency is required in the United States.
“Instead of looking at all the bells and whistles that come with it, I’m trying to focus on why do we actually need it,” Waller said. “I’m still not convinced about it.” It’s not that I couldn’t be, but I haven’t seen that on CBDC in stores.“
In addition to the United States, Waller discussed China’s CBDC, emphasizing that the digital yuan does not pose a danger to the dollar. “What has China’s central bank done?” Waller wondered. “They’ve permitted Chinese homeowners to open a PBOC bank account in order to pay their electric bills… I don’t see how having payment accounts at a central bank poses any kind of danger to the dollar.
Also Read: BIS Join Pilot Mentions that CBDCs Can Be Used Now for International Settlements By Institutions
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