Neel Kashkari, Chairman of the Minneapolis Fed, said on Friday that after FTX’s collapse exposed the industry’s shortcomings, cryptocurrency He said his idea was “nonsense”.
“The Cryptocurrency Concept Is All Bullshit”
Commenting on an article on how investors were duped by FTX, Kashkari said on Twitter:
“This is an interesting but very narrow topic. This isn’t the first case of fraudulent companies in a serious industry. The whole concept of cryptocurrency is bullshit. Not useful for payments. There is no protection from inflation. There is no rarity. There is no taxation authority. It’s just a tool for speculation and bigger follies.”
While many officials have warned of crypto risks and the need for regulation, Kashkari’s comment represents one of the strongest condemnations ever made by a Fed policy maker.
This is interesting but 2 narrow. This isn’t case of 1 fraudulent company in a serious industry. Entire notion of crypto is nonsense. Not useful 4 payments. No inflation hedge. no scarcity. No tax authorities. Just a tool of speculation & greater fools. https://t.co/9yweHwwgOL
— Neel Kashkari (@neelkashkari) November 18, 2022
Earlier this week, Fed Vice Chairman Lael Brainard said he was worried about individual investors taking losses, and complained that a platform or firm’s disruptions could cause a “domino effect” when glitches elsewhere.
In addition, Michael Barr, the Fed’s vice president of oversight, warned Congress that it should pass legislation that includes strong cryptocurrencies to prevent future financial stability risks.
On the other hand, the New York Fed’s partnership with dozens of banks and other financial institutions to test digital dollars is a sign that Wall Street intends to push its cryptocurrency agenda forward despite the recent market turmoil.
*Not investment advice.
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