Numerous Cryptocurrencies are Burning Garbage, Says a U.S Federal Reserve Official
The cryptocurrency market has enjoyed great gains so far this year as several leading cryptocurrencies have performed quite well. Nevertheless, when it comes to the use, potential, and the negative effects of such cryptos, there are still numerous questions to be answered.
Many important individuals have commented on their demerits but the president of Minneapolis Federal Reserve, Neel Kashkari, has just commented on the same.
He spoke recently at an event, saying that cryptos are “like a giant garbage dumpster,” and that they do not have the fundamental features of any stable currency. He said that USD is valuable due to the United States legal monopoly on its production.
Kashkari said there are numerous garbage coins in the cryptocurrency space and the SEC is now part of the agencies cracking down on this.
He agreed that cryptos might be useful in the future but they are nothing but burning garbage now. According to him, they are “noise and fraud.”
Kashkari noted that there is no barrier to the creation of a new crypto. He sees more noise and fraud than something beneficial, but something good could come up probably within five to twenty years from now.
Some leading U.S. banking officials have previously expressed their opinion on cryptos. Jerome Powell of the Federal Reserve has criticized them in recent times, saying that a public ledger is not workable in the U.S., unlike China. He said that the stablecoin project of Facebook seemed like a wake-up call to the Fed.
Likewise, the Treasury Secretary Steven Mnuchin in recent times announced plans towards regulation of cryptocurrencies and monitoring of rules surrounding money laundering and other illegal operations to enhance transparency around cryptos such as Bitcoin.
Nevertheless, some U.S officials are not in support of introducing cryptos. Lael Brainard of the United States Federal Reserve’s Board of Governors in recent times noted that the arrival of projects such as Facebook’s Libra has made central banks to consider a “Fedcoin.” This is such that many nations worldwide like China and Japan want to launch a state-owned digital currency.
Featured image courtesy of Shutterstock. Source: Cryptopress.