Minneapolis Federal Reserve President Neel Kashkari says crypto is “95% scam, hype, noise and confusion”. He added, “I haven’t seen any use case other than funding illegal activities like drugs and prostitution.”
The President of the Federal Reserve Bank of Minneapolis says that 95% of crypto is scam, hype, noise and confusion
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, spoke about bitcoin and cryptocurrency at the annual Pacific Northwest Economic Regional Summit in Big Sky, Montana on Tuesday.
When asked about cryptocurrency given what Miami is doing with Bitcoin and its own recently launched Miami coin, Kashkari said:
I was more optimistic about crypto or bitcoin about five or six years ago. So far I’ve seen 99% … let me be charitable, 95% scam, hype, noise and confusion.
He also doesn’t see a legitimate use case for Bitcoin. “I haven’t seen any other use case than funding illegal activities like drugs and prostitution. So far I haven’t seen a legitimate use case that Bitcoin solves. But if you want to bring Montana coins to market, don’t let me stop you, ”the Fed official said.
Several other government officials have raised similar concerns. US Treasury Secretary Janet Yellen said earlier this year that “cryptocurrencies are of particular concern,” stressing that “many, at least in terms of transactions, are mainly used for illegal funding.”
The President of the Minneapolis Federal Reserve Bank continued, “If you go into your basement and want to produce your own currency, the secret service will knock on your door and handcuff you.” He added, “There is no obstacle if you create your own Bitcoin or I create my own – I call it Neelcoin.”
Regarding the sheer number of cryptocurrencies on the market, Kashkari said:
There are thousands of these garbage coins that have been created. Some of them are outright scams, Ponzi schemes where they pump it up, they scam people into investing money, and then the founders tear them down.
In February, Kashkari similarly said that Bitcoin and other cryptocurrencies are “like a giant dumpster”.
What do you think of the comments made by the President of the Federal Reserve Bank of Minneapolis? Let us know in the comment section below.
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