Neel Kashkari Slams the Cryptocurrency Industry Saying it has Become a “farce”
Using words as ‘unregulated chaos’ and ‘escalating fraud’ had got the audience at Bay College in Michigan thinking about the negativity of cryptocurrency.
Neel Kashkari, the president of the Minneapolis Federal Reserve, slammed the cryptocurrency industry, saying it has become a “farce” due to unregulated chaos and escalating fraud. He made this comment at Bay College in Escanaba.
“It’s a clever idea that some people came up with, but now it’s being taken to ridiculous extremes,” Kashkari said “The barrier to entry to creating a new cryptocurrency is zero.”
Neel Tushar Kashkari is an Indian American banker and politician who is the President of the Federal Reserve Bank of Minneapolis. He has vast experience in the financial programs of the USA which include being the Assistant Secretary of the Treasury for Financial Stability.
Kashkari’s skepticism doesn’t mean he has no faith in the future of bitcoin or other cryptocurrencies, but more so he believes many will drop off through a natural thinning of the herd, as it were.
“Does that mean it’s always going to be a farce? No,” Kashkari said. “There will probably be a shakeout, and maybe a handful of these things will end up surviving.”
He added: “If you can dupe enough people to buy it, you can pretend that you’ve launched something. And you can say, ‘Look, I’m a billionaire because I sold you one. And I own the other 999 million of them, so that means I’m a billionaire! So it has become a farce…I’m seeing more noise and more fraud than I’m seeing anything useful.”
At the beginning of 2018, Kashkari dissed Bitcoin, linking it to no credibility compared to fiat money.
“I don’t see bitcoin as a credible competitor to the dollar in the United States of America, and the reason is the barrier of entry to you creating your own coin and me creating my own virtual currency is zero,” he said back in January 2018.
However, Kashkari believes wholeheartedly in Blockchain technology as it has game-changing properties.
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