- The Fed’s Neel Kashkari said some harsh words about cryptocurrency.
- The Minneapolis Federal Reserve President even said that he doesn’t see any use cases for bitcoin.
- Recently, the Senate rejected an amendment to a crypto tax provision they passed.
TUESDAY: Minneapolis Federal Reserve President Neel Kashkari had some harsh allegations for the trillion-dollar crypto asset market.
The central banker even went so far as to accuse bitcoin of futility. He said that he doesn’t see any use cases for bitcoin, the world’s no.1 crypto in terms of market capitalization. Moreover, he mentioned that the broader digital-asset sector largely feeds into fraud.
Kashkari shared the opinion while speaking at the Pacific Northwest Economic Regional Annual Summit in Big Sky, Mont. To be exact, he said, “Cryptocurrency is 95% fraud, hype, noise, and confusion.”
This just goes to show that while 2021 has been crypto’s big year, there is still so much uncertainty. Many are still skeptical of crypto’s practicality and real value. Despite interest from major institutions and famous personalities, for many, it is still a very volatile asset to count as an investment. This confusion exists even as Bitcoin touched highs of almost $48,000 this week.
His comments come at a time when the US already seems to be torn about what it wants to do with its crypto. Recently, Senate passed a bill that contains a crypto tax provision many government officials have deemed ‘unworkable’.