Minneapolis Fed president Neel Kashkari criticizes Bitcoin
Minneapolis Fed president Neel Kashkari criticizes Bitcoin
Federal Reserve Bank of Minneapolis President Neel Kashkari issued a sharp criticism against Bitcoin, calling it usually a “fraud and criminal activity.”
Kashkari, a vocal critic of digital assets, asserted that Bitcoin has yet to demonstrate any tangible economic value beyond being a speculative investment, heightening concerns about the currency's association with illegal transactions.
Speaking at an event earlier this week, Kashkari emphasized that Bitcoin lacks any real utility as a financial instrument for the broader economy. According to Kashkari, while blockchain technology itself has potential uses in finance, the application of Bitcoin, in particular, remains dubious. He pointed out that Bitcoin has become notorious for its utilization in activities such as money laundering and tax evasion, with little to no oversight from regulators—a fundamental reason for his negative assessment of its role in the economy.
Kashkari's criticism aligns with longstanding concerns among regulators about the broader cryptocurrency market, which has often been viewed as risky due to its volatility and lack of centralized control. Specifically, Kashkari highlighted that Bitcoin’s design is ultimately intended to foster distrust in traditional institutions, which, in his view, is counterproductive to the stability of financial markets.
Despite these criticisms, the cryptocurrency industry continues to attract both retail and institutional investors who see it as an alternative asset class that offers substantial, albeit speculative, gains. The crypto community criticized Kashkari's inappropriate comments about how cryptocurrencies are being used. In particular, Nick Carter, a partner at Castle Island, stated, “It should be illegal to be so wrong.”
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Crypto investors believe Kashkari's unsubstantiated comments are even more alarming given that he is one of the “top ten most important financial regulators on the planet.”
Earlier we wrote that the ECB also criticized Bitcoin. The regulator considers bitcoin to be a speculative asset, which, even if it continues to grow, will not benefit the European economy and EU residents.
Read also: BTC dip triggers $329 million inflow to BlackRock ETF
