Charlie Munger, vice chairman of Warren Buffett’s Berkshire Hathaway, has made clear his disdain for cryptocurrencies over the past few years, calling bitcoin “rat poison” at one point.
He repeated his crypto opposition in comments at the Daily Journal's annual shareholder meeting Wednesday, Markets Insider reports. Munger is chairman of the newspaper company. The meeting was streamed on Yahoo Finance.
"I'm proud of the fact I've avoided it,” he said, referring to cryptocurrencies. “It's like some venereal disease ... I just regard it as beneath contempt."
Cryptocurrencies are popular because they can be used for kidnapping, extortion and tax evasion, Munger said. He expressed support for China’s move to outlaw private digital currencies.
The Federal Reserve has broached the idea of introducing an official digital dollar -- a central bank digital currency, or CBDC. Munger expressed support for the idea, saying bank accounts now are essentially digital currencies.
The Fed issued a report last month outlining the pros and cons of a digital dollar.
The Fed is in no rush to act, given the complexities of a CBDC.
“The introduction of a CBDC would represent a highly significant innovation in American money,” the report said. “Accordingly, broad consultation with the general public and key stakeholders is essential.”
The Fed said it’s not doing anything without clear support from Congress and the White House, “ideally in the form of a specific authorizing law.”
As for the benefits of a digital dollar, it “would offer the general public broad access to digital money that is free from credit risk and liquidity risk,” the Fed said. “As such, it could provide a safe foundation for private-sector innovations to meet current and future needs and demands for payment services.”
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