Fed Chairman Says Entire Notion of Crypto Is Nonsense After Controversial FTX Implosion

Fed Chairman Says Entire Notion of Crypto Is Nonsense After Controversial FTX Implosion

The president of the Federal Reserve Bank of Minneapolis has said that the whole notion of digital assets may be abandoned following the collapse of crypto exchange FTX.

Fed Chairman Neel Kashkari said there is corruption in crypto that won’t end with the downfall of FTX because the whole industry is ‘nonsense’ and has no real use cases.

“It’s not [a] case of a fraudulent company in a serious industry. The whole notion of crypto is nonsense. Not useful for payments. No inflation hedge. No rarity. No tax authority. Just a tool for speculation and bigger fools.

This is not the first time Kashkari has been vocal against the crypto. Last year, the Fed Chairman declared Bitcoin (BTC), and essentially all crypto assets, to be fraudulent in nature.

At the time, he said the fact that anyone can create virtual currency without legal repercussions makes them essentially useless.

“I was more optimistic about Bitcoin and crypto five or six years ago. So far what I’ve seen is 99%, 95% – allow me to be charitable – 95% fraud, hype, noise and confusion.

You know, why is the dollar so valuable? Because the US government has a monopoly on the production of dollars. If you go to your basement and want to start making your own money, the Secret Service will knock on your door and handcuff you. There is no obstacle for you to create your own bitcoin or me to create mine…

Some of them are complete Ponzi schemes, where they pump, they trick people into investing money, and then the founders rip them off.

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