Governor Calls Out The Crypto Market Volatility
Lael Brainard a member of the Federal Reserve’s board of governors called bitcoin and other cryptocurrencies out for their “extreme volatility” on Tuesday. While doing so, she made it clear that it does not pose a risk to stability of the U.S. economy but needs to be looked at.
“One area that the Federal Reserve is monitoring is the extreme volatility evidenced by some cryptocurrencies. For instance, bitcoin rose over 1,000 percent in 2017 and has fallen sharply in recent months.”
Brainard thinks that the crypto markets “may raise important investor and consumer protection issues” along with money laundering issues. Her main concern is that investors are aware of the pitfalls and potential for losses.
Brainard also argued that cryptocurrencies are unlikely to have any effect on the financial stability of the United States because the assets are not commonly used in payments.