Federal Reserve Executive Officers Offer a Surprising Twist of Praise for Crypto

There’s no need to pinch yourself. This is not a dream. A member of the United States government has said something positive about cryptocurrency. After months (perhaps years) of being berated by the Securities and Exchange Commission (SEC) Chair Gary Gensler, the crypto community tends to be pretty wary of US regulators. But in a dramatic change of pace, the Federal Reserve Governor Waller heaped praise onto digital currencies while attending a financial event yesterday.

DeFi Could Strengthen U.S. Economy

A key fear of anti-crypto regulators isn’t just the volatility – it’s the uncertainty that may come with a shift away from a controlled, fiat asset. If the paradigm shifts toward digital currencies (as opposed to cash), many argue that this could destabilise both national and global economies.  

However, Governor Waller addressed this fear directly in his speech, suggesting that any integration of DeFi/blockchain tech and fiat currency would only serve to strengthen the US financial sector.

People often conjecture that cryptocurrencies like Bitcoin may replace the US dollar as the world’s reserve currency…[but] it is likely that any expansion of trading in the DeFi world will simply strengthen the dominant role of the dollar”

Fed Gov. Christopher Waller

The premise for Waller’s argument revolves around stablecoins – the most-traded assets in the DeFi sector. He suggests that as long as most stablecoins remain pegged to the US dollar, crypto will easily work in tandem with fiat.

Waller went on to say: “Recent developments that some have warned could threaten that status [USD being a global reserve] have, if anything, strengthened it.”

In a separate, hilarious incident, staunchly anti-crypto senator Elizabeth Warren was seen today flying a flag in commemoration of Bitcoin’s 15th anniversary. Most are speculating it was sponsored by an anonymous source and is unfortunately not actually a backflip so intense it would make Jim Cramer proud. 

But, even so, it’s still pretty funny.