FED Member Waller Talked About Bitcoin Spot ETFs: “I Don’t Want Banks to Hold High Amounts”

At a recent conference in the Bahamas, Fed member Christopher Waller made some notable statements. However, he declined to comment on the economy or monetary policy in prepared remarks.

Waller suggested that the US dollar would retain its status as the world's reserve currency. Waller argued that recent events have only strengthened this situation. This comes amid growing debate about the potential of other currencies, such as the Chinese Yuan, to challenge the dominance of the US dollar. However, Waller pointed out some factors that work against the Yuan as an attractive asset.

In the context of ongoing discussions about the need for a Central Bank Digital Currency (CBDC) in the US, Waller said he does not see such a need. Waller's comments come at a time when many countries are exploring or have already implemented their own CBDCs.

Waller also touched on the issue of cryptocurrency ETFs, saying he was uncomfortable with banks holding large amounts of these assets.

The SEC recently approved a total of 9 new Bitcoin Spot ETFs, allowing billions of dollars of assets to flow into these products. However, the SEC's approval took place when the US authorities were backed into a corner.

*This is not investment advice.