Late Tuesday, Federal Reserve politician Neel Kashkari cursed cryptocurrencies as “trash” coins and rejected the idea that he could create his own token and name it “Neelcoin”.
In response to a question at the annual Pacific Northwest Economic Regional summit, Kashkari stated that he had not found a valid argument for any practical use of cryptocurrency.
Please point out to me that the communities have been lifted out of poverty because of crypto, aside from scammers who rip off unsuspecting people in pump-and-dump systems. https://t.co/jJXpYrnh5F
– Neel Kashkari (@neelkashkari) 23 August 2021
Federal Reserve Bank of Minneapolis President Neel Kashkari enraged the cryptocurrency community again with a recent tweet claiming that the cryptocurrency business is just full of “scammers” using pump-and-dump strategies to deceive the uninitiated.
Since cryptocurrencies are heavily traded unlike traditional financial assets, scammers often pump them out. Price changes on a single exchange can have a huge impact on the entire market. Pumpers usually look for lesser-known altcoins that don’t require a lot of capital to manipulate the market.
Cryptocurrency helps citizens
According to IOG CEO Charles Hoskinson, who founded the Proof-of-Stake blockchain project Cardano, the excessive money production by the Federal Reserve is forcing people to trust in “healthy money” that cannot be manipulated by the government.
The organization that prints TRILLIONS every year and claims there is no inflation, devastating the poorest of us, has a problem with healthy money that politics cannot manipulate. I am shocked Neel !! SHOCKED!!! https://t.co/zky65kZ2De
– Charles Hoskinson (@IOHK_Charles) 23 August 2021
The head of the Human Rights Foundation’s strategy department, Alex Gladstein, also provided several stories that illustrated how cryptocurrencies are helping the citizens of Cuba, Nigeria and Ethiopia regain their economic independence and fight corruption. Kashkari has long been a skeptic about cryptocurrency, but recently he has become even more so.
He recently said that he was more positive about the industry in 2015 than he is now. He also said that “hype, noise and confusion” are responsible for 95% of all cryptocurrencies. After his controversial “60 Minutes” interview, in which he implied that the central bank was ready to print an unlimited amount of money to support the US economy, the central bank became known in Bitcoin circles.