Federal Reserve Official: Cryptocurrency Is Just ‘Nonsense’
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Minneapolis Federal Reserve Bank chief Neil Kashkari said the whole idea of cryptocurrencies was “nonsense,” in statements that came after a major FTX platform meltdown that exposed the shortcomings of these currencies, as he Leg It .
Kashkari, in statements posted to social networking site Twitter and commenting on an article on the impact of the FTX platform collapse on investors, said the company’s incident was not a fraud case committed in a serious industry there are those who say that the whole idea behind cryptocurrencies is nonsense, they are not useful for payments, they are not used for inflation protection, they are not subject to the tax authorities, they are just a dumb tool based on expectations.
Kashkari’s comments come amid warnings from many officials about the dangers of cryptocurrencies and the need to create a mechanism to regulate them. Kashkari’s comments are also considered one of the strongest condemnations of a monetary policymaker from the US Federal Reserve. Michael Barr, Chief Regulatory Officer of the Federal Reserve Bank, called for the collapse of a large company or trading platform. Congress must pass legislation that contains strong protective barriers for cryptocurrencies in order to prevent the resulting risks in the future. The Binance CEO had warned that the reeling cryptocurrency industry was facing a 2008-style crisis that would result in a much-needed regulatory crackdown. It is devastating for the industry and consumer confidence has been severely shaken,” said Changpeng Zhao, CEO of cryptocurrency exchange Binance.
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