The President of the Federal Reserve Bank of Minneapolis says that the whole notion of digital assets can be discarded following the collapse of prominent crypto exchange platform FTX.
Fed President Neel Kashkari says there is corruption in crypto that won’t end with the downfall of FTX as the entire industry is “nonsense” and has no real-life use cases.
“This isn’t [a] case of one fraudulent company in a serious industry. Entire notion of crypto is nonsense. Not useful for payments. No inflation hedge. No scarcity. No taxing authority. Just a tool of speculation and greater fools.”
This isn’t the first time Kashkari has sounded off against crypto. Last year, the Fed President said that Bitcoin (BTC), and basically all crypto assets, were fraudulent in nature.
At the time, he said the fact that anyone can create a virtual currency with no legal repercussions renders them essentially useless.
“I was more optimistic about Bitcoin and crypto five or six years ago. So far what I’ve seen is 99%, 95% – let me be charitable – 95% fraud, hype, noise, and confusion.
You know, why is the dollar so valuable? Because the US government has a monopoly on producing dollars. If you go in your basement and you wanna start producing your own currency, the Secret Service is gonna come knock on your door and put you in handcuffs. There’s no barrier to you creating your own Bitcoin or me creating my own…
Some of them are complete fraud Ponzi schemes, where they pump it up, they dupe people into investing money, and then the founders rip them off.”
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