Neel Kashkari of Minneapolis Federal Reserve said crypto was “95% Fraud, Hype, Noise and Confused.” He said, “I haven’t seen any use cases except for funding illicit activities like drug and prostitution.”
Minneapolis Federal Reserve Chairman Says that Crypto is 95% Fraud, Hype and Noise.
Chairman of the Federal Reserve Bank of Minneapolis Neel Kashkari spoke Tuesday at the annual Pacific Northwest Regional Economic Summit, Big Sky, Montana, about bitcoin and cryptocurrency.
Kashkari answered a question about cryptocurrency in light of what Miami is doing to bitcoin and its newly launched coin.
Five or six years ago, I was more optimistic about bitcoin or crypto. So far what I’ve seen is 99%… Let me be charitable, 95% fraud, hype, noise and confusion.
He doesn’t see bitcoin as a legitimate use. “I haven’t seen any use cases other than funding illicit activities like drugs and prostitution. I haven’t seen any legitimate use cases that bitcoin solves. But if you want to flip the Montana coin, don’t let me stop you, ”the Fed official said.
Other government officials also expressed similar concerns. Janet Yellen, the US Treasury Secretary, stated earlier this year that “cryptocurrencies were of particular concern”, pointing out that “many are used,” at least in terms of transactions, primarily for illegal financing.
The Minneapolis Federal Reserve Chairman continued, “If you go into your basement and you want to start producing your own currency, the Secret Service is going to come knocking on your door and handcuff you. He continued, “There is no problem to you creating bitcoin or I creating it – I’ll name it neelcoin.”
Kashkari spoke out about the large number of cryptocurrencies currently on the marketplace.
There are many of these pieces. Some of them are frauds, Ponzi Schemes. The founders trick people into investing their money, then rip them off.
Kashkari stated that bitcoin and other cryptocurrency were “like a huge dumpster” in February.
What do you think of these words from the President of Federal Reserve Bank of Minneapolis Leave your comments below.
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