The Federal Reserve (FED) Governor Christopher shared his opinion on the crypto industry and warned people about the risk factors.
Recently Governor Christopher, governor of the Federal Reserve, talked about the major issues related to cryptocurrencies during the conference of the Swiss National Bank (SNB)-Community Investment Fund (CIF). The conference was focused on the discussion related to Crypto Assets and Financial Innovation.
Christopher noted that the crypto industry achieved huge growth in the last 5 years by some significant factors. And now the current situation and position of this crypto industry have been changed from the payment system to the alternative finance market.
The Fed governor also said that the rapid growth of this industry caused the birth of a gap between the traditional rules and this digital industry.
“In that environment, the normal backstops and safety nets of traditional finance do not necessarily or reliably apply. High volatility is the rule, not the exception; fraud and theft occur regularly, often on a large scale. Your whole pot is always on the table.”
According to Christopher, all the crypto investors can handle their trade activities in this industry, so they never support additional regulatory framework proposals.
Fed governor said that rules are made to help the retail investors from the highly volatile market. And 12% of the US adults are holding Crypto assets, as per the survey.
According to the report of last year’s Fed survey on crypto, the majority of the crypto assets buyers & holders invested in crypto from the point of investment & rapid profit in a short time.
On the loss of money from crypto investment, by retail investors because of lack of education in crypto & other trading techniques, Christopher said that it is a social responsibility to prohibit such things to keep people from losing or making other mistakes.
By taking the reference to last month’s incident, where the Terra ecosystem collapsed and both native coins touched ground price, Christopher said that “society wants to regulate new and poorly understood markets for financial products.”