The President of the Federal Reserve Bank of Minneapolis says the notion of digital assets may be scrapped after the collapse of popular cryptocurrency exchange FTX. Federal Reserve Chairman Neel Kashkari says there is corruption in cryptocurrency that will not end with the fall of FTX as the entire industry is “bullshit” and has no real use cases. “This is not [a] case of a fraudulent company in a legitimate industry. The whole idea of crypto is nonsense. Not useful for payments.
No inflation protection. No scarcity. No Treasury. They are just an instrument of speculation and bigger fools.
Kashkari has spoken out against cryptocurrencies before. Last year, the Fed chair said that Bitcoin (BTC) and all crypto assets are fraudulent. He claimed at the time that the fact that anyone can generate virtual currency without facing any legal repercussions effectively makes it useless. “Five or six years ago, my outlook on bitcoin and other cryptocurrencies was more upbeat. Fraud, overstatement, noise, and confusion.
Do you understand why the dollar is so precious? Because the US government has a monopoly on making dollars. If you want to go down to your basement and start producing your currency, the Secret Service will knock on your door and handcuff you. There is no stopping you from creating your bitcoin or me from creating my own. Some of them are fraudulent Ponzi schemes where they inflate it, trick people, into investing money and then get scammed by the founders.