US Fed Res official says “Cryptocurrencies still have no legal application”

Neel Kashkari slammed crypto & blockchain and called this technology a way for crypto traders to subvert bank regulations.

Neel Tushar Kashkari is an American banker, economist, and politician. He’s currently the president of the Federal Reserve Bank of Minneapolis. Before that, he managed a big government program during the financial crisis. He ran for governor in California but didn’t win. 

Recently Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, shared his personal opinion on crypto & blockchain technology during a LinkedIn live event with Pensions & Investments Editor-in-Chief Jennifer Ablan. 

Neel said that he sees Bitcoin as a “consumer protection issue” because some people don’t fully understand their crypto investments. He also said that he is worried that cryptocurrencies are so unpredictable that they could harm crypto investors badly. 

This Fed official also compared Bitcoin with Beanie Babies and said that this digital asset has no use case in the economy but still some people enjoy it in trading & trying to subvert banking regulations.

For such harsh comments against Bitcoin & cryptocurrencies, many crypto proponents criticised Neel. 

A crypto X (formerly Twitter) user said that Bitcoin has numerous legitimate use cases in advanced democracies, spanning from managing power grids to charitable donations.

It is worth it to know that Neel has been a Bitcoin sceptic person for 5-6 years. In the past, he passed many negative comments against Bitcoin. 

In the past, he has raised concerns about Bitcoin volatility, potential for illicit activities, and lack of regulation but important to note that his views on this topic may evolve, and it’s always a good idea to consider a range of perspectives when forming an opinion on cryptocurrencies.

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