Bitcoin (BTC) news: Fed's Kashkari says crypto is 'utterly useless' - CoinDesk

Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, has raised significant eyebrows in the cryptocurrency community by labeling Bitcoin and other cryptocurrencies as "utterly useless." His remarks came during a recent interview, in which he expressed skepticism about the value and utility of digital currencies.

Kashkari articulated his view that cryptocurrencies do not serve the fundamental functions of traditional currencies, such as acting as a stable unit of account, a reliable store of value, or a medium of exchange. He emphasized that while cryptocurrencies may have gained popularity, particularly among retail investors, they are primarily speculative assets rather than practical financial tools.

This assertion is not new; Kashkari has been a vocal critic of digital currencies in the past. He reiterated that the volatility associated with cryptocurrencies makes them unsuitable for use in everyday transactions. For instance, Bitcoin's price can fluctuate dramatically over short periods, which undermines its credibility as a stable currency. He pointed out that the lack of intrinsic value and regulatory oversight further weakens the case for cryptocurrencies as a viable alternative to fiat currencies.

Kashkari's comments come at a time when the cryptocurrency market is experiencing increased scrutiny from regulators as they seek to establish frameworks for oversight. His perspective adds to the ongoing debate about the future of digital currencies, particularly as institutions and financial regulators are still grappling with how to integrate them into the existing financial system.

The Federal Reserve's stance on digital currencies has been cautious, emphasizing the need for consumer protection and financial stability. Kashkari's views could influence future discussions on cryptocurrency regulation and adoption, especially as central banks around the world explore their own digital currencies.

In conclusion, while cryptocurrencies continue to attract attention and investment, significant skepticism remains among key financial leaders regarding their practical applications and long-term viability.

Key Takeaways

• Neel Kashkari, president of the Minneapolis Federal Reserve, declared cryptocurrencies "utterly useless" during a recent interview.
• He criticized digital currencies for lacking the stability and functions of traditional currencies, emphasizing their speculative nature.
• Kashkari's comments reflect ongoing skepticism in the financial sector about the practical utility of cryptocurrencies.
• The Federal Reserve continues to advocate for regulatory frameworks to ensure consumer protection and financial stability concerning digital assets.

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