{"id":14702,"date":"2022-11-22T04:55:37","date_gmt":"2022-11-22T04:55:37","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/federal-reserve-bank-president-says-entire-notion-of-crypto-is-nonsense-regulation-bitcoin-news\/"},"modified":"2022-11-22T04:55:37","modified_gmt":"2022-11-22T04:55:37","slug":"federal-reserve-bank-president-says-entire-notion-of-crypto-is-nonsense-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/federal-reserve-bank-president-says-entire-notion-of-crypto-is-nonsense-regulation-bitcoin-news\/","title":{"rendered":"Federal Reserve Bank President Says ‘Entire Notion of Crypto Is Nonsense’ \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, says crypto exchange FTX isn\u2019t \u201cone fraudulent company in a serious industry.\u201d Stating that the \u201cEntire notion of crypto is nonsense,\u201d the Fed president claimed it is \u201cjust a tool of speculation and greater fools.\u201d<\/strong><\/p>\n

Minneapolis Fed President Neel Kashkari on Crypto and FTX Collapse<\/h2>\n

Federal Reserve Bank of Minneapolis President Neel Kashkari shared his view on the collapse of cryptocurrency exchange FTX Friday.<\/p>\n

\u201cThis isn\u2019t [a] case of one fraudulent company in a serious industry,\u201d he tweeted, elaborating:<\/p>\n

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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.<\/p>\n<\/blockquote>\n

Kashkari has never been a fan of bitcoin or crypto. He previously called<\/a> them \u201ca giant garbage dumpster.\u201d In August last year, he said bitcoin and crypto were \u201c95% fraud, hype, noise, and confusion,\u201d stating<\/a>: \u201cI\u2019ve not seen any use case other than funding illicit activities like drugs and prostitution.\u201d<\/p>\n

Following the FTX meltdown, several Fed officials called for stricter cryptocurrency regulation. Federal Reserve Vice Chair Lael Brainard has stressed the importance of strong cryptocurrency oversight. \u201cIt\u2019s really concerning to see that retail investors are really getting hurt by these losses,\u201d she opined<\/a>.<\/p>\n

Michael Barr, Federal Reserve\u2019s vice chair for supervision, said in response to a question at a Senate Banking Committee hearing last week:<\/p>\n

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We\u2019re concerned about the risks that we don\u2019t know about in the non-bank sector. That includes obviously crypto activity \u2026 that can create risks that blow back to the financial system that we do regulate.<\/p>\n<\/blockquote>\n

While Kashkari believes that the FTX collapse is not the case of one fraudulent company in the crypto industry, some people have pointed out that the exchange meltdown is not crypto-specific. FTX and its former CEO Sam Bankman-Fried have been compared to the Enron fraud<\/a> or Bernie Madoff\u2019s Ponzi scheme<\/a>.<\/p>\n

Shark Tank star and the owner of the NBA team Dallas Mavericks, Mark Cuban, explained<\/a> that recent blowups of companies in the crypto space, including FTX, \u201chave not been crypto blowups.\u201d He emphasized: \u201cThey have been banking blowups \u2026 Lending to the wrong entity, misvaluations of collateral, arrogant arbitrages, followed by depositor runs.\u201d<\/p>\n

What do you think about the comments by Federal Reserve Bank of Minneapolis President Neel Kashkari? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, lev radin<\/em><\/p>\n

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