U.S. Federal Reserve Official Says Various Cryptos are Like ‘Burning Garbage’
This year has brought tremendous gains in the crypto market. Several leading cryptocurrencies are performing exceptionally well. Numerous questions still need answers regarding the use, potential, and adverse effects of cryptos.
Comments on crypto demerits arose, including Minneapolis Federal Reserve president, Neel Kashkari, commenting on the same.
He spoke recently at an event, stating that cryptos are “like a giant garbage dumpster,” and they do not have the fundamental features of any stable currency. He added that USD is valuable due to the United States legal monopoly on its production.
He recently spoke about how cryptocurrency is “like a giant garbage dumpster” and lacks the essential characteristics of a stable currency. He added that the U.S. dollar was valuable because of the legal U.S. monopoly on its production.
Kashkari said there were many junk coins in the cryptocurrency space, and the SEC was already among agencies cracking down on it.
Kashkari noted that there is no barrier to the creation of new crypto. He agreed that cryptos might be useful in the future but insisted they are nothing but burning garbage now, claiming they are “noise and fraud.”
Previous Crypto Criticism
Some prominent U.S. bankers have expressed their views on cryptocurrency. Jerome Powell of the Federal Reserve recently criticized him, arguing that the public ledger doesn’t work in the United States, unlike China. He said Facebook’s stablecoin project seemed like a wake-up call to the Fed.
Similarly, Steven Mnuchin, the Treasury Secretary, in recent times announced plans towards the regulation of cryptocurrencies and monitoring of rules surrounding money laundering and other illegal operations. It is aimed at enhancing transparency around cryptos such as Bitcoin.
However, some U.S. officials do not support crypto adoption. Lael Brainard of the U.S. Federal Reserve Board recently noted that the Libra project initiative has led central banks to consider Fedcoin. It is so that many countries in the world, such as China and Japan, want to issue national digital currencies.