Neel Kashkari, chairman of the Minneapolis Federal Reserve, says that encryption is “95% fraud, outrage, noise and confusion.” He added: “I have not seen any use other than the financing of illicit activities such as drugs and prostitution.”
Federal Reserve Bank of Minneapolis Chairman Crypto Says 95% Fraud, Outrage, Noise, and Confusion
Neel Kashkari, chairman of the Federal Reserve Bank of Minneapolis, spoke about bitcoin and cryptocurrencies Tuesday at the Annual Pacific Northwest Regional Economic Summit in Big Sky, Montana.
When asked about cryptocurrency, given what Miami is doing with bitcoin and its own recently launched Miami coin, Kashkari said:
About five or six years ago, I was more bullish on crypto or bitcoin. So far I have seen 99%… Let me be charity, 95% fraud, outrage, noise and mayhem.
Also, you don’t see a legitimate use case for bitcoin. “I did not see any other use case than the financing of illegal activities such as drugs and prostitution. I have not seen a legitimate use case so far for solving bitcoin. But if you want to flip a Montana coin, don’t let it stop you, “said a Fed official.
Some other government officials have expressed similar concerns. US Treasury Secretary Janet Yellen said earlier this year that “cryptocurrencies are a particular concern”, emphasizing that “they are used a lot, at least in a transactional sense, especially for illicit financing.”
The president of the Federal Reserve Bank of Minneapolis continued: “If you go to your basement and want to start producing your own currency, the Secret Service will knock on your door and lock you up in handcuffs.” He added: “There is no obstacle to creating your own bitcoin, or I have my own, I call it neelcoin.”
Commenting on the large number of cryptocurrencies on the market, Kashkari said:
Thousands of such coins were created. Some of them are outright scams, Ponzi schemes where they inflate, entice people to invest money, and then the founders rip them out.
In February, Kashkari similarly said that bitcoin and other cryptocurrencies are “like a giant pile of garbage.”
What do you think of the statements of the president of the Federal Reserve Bank of Minneapolis? Let us know in the comment section.
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