Neel Kashkari, the President of Minneapolis Federal Reserve, in a recent interview, said that crypto can be useful only after 5 to 20 years from now. Today it is just a giant garbage dumpster. These negative views by Kashkari on crypto came after he was interviewed on various aspects of the US economy.
Kashkari on crypto
Kashkari added to his statement that fiat currency like dollar have value only because only the government has the monopoly of producing it, unlike the cryptocurrencies and the virtual currencies. He referred to these cryptocurrencies as ‘garbage currency’.
Kashkari continued that he is relieved now that the SEC is looking seriously into this. The problem with these cryptocurrencies is that there is no one or nothing to stop people from creating new cryptocurrencies. The ‘noise and fraud’ has been rising constantly. However, down the line in 5 or 10 or maybe 20 years, cryptocurrencies will be useful.
Kashkari generated shockwaves among the financial markets
The views expressed by Kashkari on crypto has generated shockwaves among the financial market and the cryptosphere. This was not the first time when cryptocurrencies were criticized by the US government officials. The chairman of the board of governors of the Federal Reserve, Jerome Powell, also stated that cryptocurrencies can’t be used as a public ledger in the US. Countries like China can afford to do so.
Steven Mnuchin, who serves as the US Secretary of Treasury, has also announced that the government is looking on to regulate cryptocurrencies more and control the illegal activities surrounding Bitcoin.
However, there are a lot of politicians that favor the emergence of cryptocurrencies and see the potential of opportunities it generates. One of the members of the board of governors of the US Federal Reserve, Lael Brainard feels that with the emergence of Libra (Facebook’s cryptocurrency), central banks have started to consider developing ‘Fedcoin’.
Featured image from Pixabay
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