Connect with us

News

Federal Reserve Bank President Says ‘Entire Notion of Crypto Is Nonsense’

Federal Reserve Bank President Says ‘Entire Notion of Crypto Is Nonsense’The president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, says crypto exchange FTX isn’t “one fraudulent company in a serious industry.” Stating that the “Entire notion of crypto is nonsense,” the Fed president claimed it is “just a tool of speculation and greater fools.” Minneapolis Fed President Neel Kashkari on Crypto and FTX […]

Federal Reserve Bank President Says ‘Entire Notion of Crypto Is Nonsense’

The president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, says crypto exchange FTX isn’t “one fraudulent company in a serious industry.” Stating that the “Entire notion of crypto is nonsense,” the Fed president claimed it is “just a tool of speculation and greater fools.”

Minneapolis Fed President Neel Kashkari on Crypto and FTX Collapse

Federal Reserve Bank of Minneapolis President Neel Kashkari shared his view on the collapse of cryptocurrency exchange FTX Friday.

“This isn’t [a] case of one fraudulent company in a serious industry,” he tweeted, elaborating:

Entire notion of crypto is nonsense. Not useful for payments. No inflation hedge. No scarcity. No taxing authority. Just a tool of speculation and greater fools.

Kashkari has never been a fan of bitcoin or crypto. He previously called them “a giant garbage dumpster.” In August last year, he said bitcoin and crypto were “95% fraud, hype, noise, and confusion,” stating: “I’ve not seen any use case other than funding illicit activities like drugs and prostitution.”

Following the FTX meltdown, several Fed officials called for stricter cryptocurrency regulation. Federal Reserve Vice Chair Lael Brainard has stressed the importance of strong cryptocurrency oversight. “It’s really concerning to see that retail investors are really getting hurt by these losses,” she opined.

Michael Barr, Federal Reserve’s vice chair for supervision, said in response to a question at a Senate Banking Committee hearing last week:

We’re concerned about the risks that we don’t know about in the non-bank sector. That includes obviously crypto activity … that can create risks that blow back to the financial system that we do regulate.

While Kashkari believes that the FTX collapse is not the case of one fraudulent company in the crypto industry, some people have pointed out that the exchange meltdown is not crypto-specific. FTX and its former CEO Sam Bankman-Fried have been compared to the Enron fraud or Bernie Madoff’s Ponzi scheme.

Shark Tank star and the owner of the NBA team Dallas Mavericks, Mark Cuban, explained that recent blowups of companies in the crypto space, including FTX, “have not been crypto blowups.” He emphasized: “They have been banking blowups … Lending to the wrong entity, misvaluations of collateral, arrogant arbitrages, followed by depositor runs.”

What do you think about the comments by Federal Reserve Bank of Minneapolis President Neel Kashkari? Let us know in the comments section below.

Source: Regulation Archives – Bitcoin News

Continue Reading
Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

News

Report: Nigerian Securities Regulator to Exclude Crypto in its Digital Asset Agenda

Report: Nigerian Securities Regulator to Exclude Crypto in its Digital Asset AgendaAccording to Lamido Yuguda, the director general of the Nigerian Securities and Exchange Commission, the regulator does not plan on including cryptocurrencies in its digital asset agenda. Yuguda reportedly said the commission will only change its stance on cryptos when Nigerian regulators agree on the standards to protect digital asset investors. Commission to Promote ‘Sensible […]

Report: Nigerian Securities Regulator to Exclude Crypto in its Digital Asset Agenda

According to Lamido Yuguda, the director general of the Nigerian Securities and Exchange Commission, the regulator does not plan on including cryptocurrencies in its digital asset agenda. Yuguda reportedly said the commission will only change its stance on cryptos when Nigerian regulators agree on the standards to protect digital asset investors.

Commission to Promote ‘Sensible Digital Assets’

The Nigerian Securities and Exchange Commission (NSEC) said it will only include cryptocurrencies in its digital assets agenda when regulators finally agree on the standards to protect investors. The commission added that cryptocurrencies are currently excluded because the exchange platforms where such digital assets are traded are operating outside of the Nigerian banking system.

According to a Bloomberg report, the NSEC is keen on promoting what the institution’s director general Lamido Yuguda calls “sensible digital assets.” Yuguda explained:

The commission is in the business of protecting investors, not in the business of speculation.

In addition to promoting safer digital assets, the commission reportedly said it will explore blockchain’s use in advancing virtual and traditional investment products.

In May, the NSEC unveiled new rules governing the issuing of digital assets as well as the registration requirements for platforms that offer digital assets. At the time, some in the Nigerian crypto community believed the new rules applied to cryptocurrencies. While Yuguda admitted that cryptos are presently excluded, he did not rule out including them in the future.

“Any asset that is traded in the Nigerian capital market requires the joint approach of different regulators,” the director-general reportedly said.

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts on this story? Let us know what you think in the comments section below.

Source: Regulation Archives – Bitcoin News

Continue Reading
Advertisement

Top Posts

We need your support.

Enjoying our free service? Please help us by clicking the ads on our website. They are 100% safe. Thank you!