Minneapolis Fed president recalls link between Bitcoin and crime

Neel Kashkari, president of the Minneapolis Fed, criticized cryptocurrencies and questioned whether Bitcoin could be useful to Americans as a hedge against inflation.

“Five or six years ago I was more optimistic about cryptocurrencies and Bitcoin. So far, all I have seen is 95% fraud, hype, noise and confusion,” Kashkari said.

In his view, digital gold is used “to finance illegal activities, such as drugs and prostitution.”

The official also contrasted the open nature of cryptocurrencies with the government’s monopoly on money issuance. He noted that thousands of “junk coins” have appeared, some of which are “obvious financial pyramids”.

Earlier, Kashkari called meme cryptocurrency Dogecoin a Ponzi scheme.

In March the head of the ФРС Jerome Powell questioned Bitcoin’s qualities as a store of value and a means of payment.

Later he said that the advent of a digital dollar would dent Bitcoin’s popularity and stablecoins.

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