With Trump's official nomination of Kevin Warsh as the next Federal Reserve Chair, the crypto market is trying to decipher the true intentions of this 'potential leader'. He is not only a policymaker well-versed in power dynamics but also an early participant with a deep understanding of digital assets.
1. Bitcoin: not a threat, but 'digital gold'
Wash's attitude towards Bitcoin seems quite advanced within traditional financial circles. He clearly states that Bitcoin does not make him feel nervous. On the contrary, he believes that Bitcoin has a similar 'sustainable value storage' function as gold. In terms of asset allocation, he openly admits that holding Bitcoin in a portfolio is reasonable and views it as a growing 'alternative currency'.
2. Unique 'Policy Policeman' theory
Waller proposed a profoundly deep viewpoint: he sees Bitcoin as a **'Policy Policeman.'** He believes that when the government's fiscal or monetary policy deviates from the right track and undermines the credibility of fiat currency, the inflow of funds into Bitcoin is actually a 'warning signal' sent by the market to decision-makers. This perspective endows crypto assets with a systemic role in balancing government power and reflecting the quality of policies.
3. Both a theorist and an 'insider' investor
Unlike many officials who merely talk the talk, Waller has personally participated in the construction of the crypto industry:
Early involvement: He has invested in the algorithmic stablecoin project Basis (2018).
Institutional perspective: He has also served as an advisor or investor for the crypto index fund management company Bitwise, indicating his strong support for crypto assets entering the mainstream institutional view.
4. Regarding the 'digital dollar': Support wholesale, reject retail
On the issue of monetary sovereignty, Waller is clear-cut:
Support wholesale CBDC: He advocates that the United States should establish a 'wholesale digital dollar' for interbank large-value settlements to maintain the dollar's hegemonic position in the international payment system and counter the challenges posed by other countries' digital currencies.
Oppose retail CBDC: He firmly opposes the Federal Reserve directly issuing digital accounts to ordinary citizens. He believes this not only infringes on citizens' privacy but also gives the state excessive surveillance power, disrupting the free market.
Stablecoin regulation: He advocates for strict regulation of private stablecoin issuers (similar to banking standards) to ensure they do not undermine the sovereign status of the dollar.
5. Hidden shadows: Liquidity pressures brought by hawkish style
Although Waller has a positive attitude towards Bitcoin's logic, crypto investors must be wary of his monetary policy tendencies. Waller is fundamentally a 'hawkish' supporter of quantitative tightening; he has long advocated for a significant reduction of the Federal Reserve's balance sheet and holds a critical stance towards excessively loose monetary conditions.
Core contradiction: The crypto market (especially altcoins) is essentially a liquidity 'barometer.' If Waller insists on implementing quantitative tightening (QT) or refuses aggressive rate cuts after taking office, even if he has a high regard for Bitcoin, the market may fall into a downward trend due to a 'lack of money.'