Recent remarks by Minneapolis Federal Reserve President Neel Kashkari raised red flags over the potential dangers of cryptocurrency.
Kashkari expressed worry regarding consumer protection in relation to Bitcoin and other cryptocurrencies during his Linkedin Live discussion with Pensions & Investments Editor-in-Chief Jennifer Ablan.
According to Kashkari, Bitcoin is a “consumer protection concern” since not all investors have a firm grasp on cryptocurrency. The unpredictability of cryptocurrency prices, Kashkari said, might hurt a lot of people. From a consumer standpoint, Kashkari expressed worry about the abundance of fraud, dishonesty, and misunderstanding.
The author draws a comparison between Beanie Babies and Bitcoin, stating that the cryptocurrency “has no actual function in the economy other than being a cute toy that some people enjoy buying and trading.” In his opinion, Bitcoin is just useful for traders who are “trying to avoid banking restrictions, conceal drug banking, or engage in illicit behavior,” he said.
Additionally, Kashkari drew similarities between Bitcoin and Amazon. Bitcoin has been around for almost ten years, but according to Kashkari, it still doesn’t have any real utility in a developed democracy, unlike Amazon in 1994. There was a lot of back and forth on Kashkari’s opinions on Bitcoin’s usage after this comment.
Even though he has always been skeptical about Bitcoin, Kashkari had a more positive outlook on cryptocurrencies around five or six years ago.
Also Read: The ARK Invest of Cathie Wood Accidentally holds a $15,000 Bitcoin Puppet
Wallets