March 29, 2024

Head of the Federal Reserve Bank of Minneapolis: “Today's cryptocurrencies are blazing trash”

Federal Reserve Chairman Jerome Powell admits that national digital currencies haveprospects. However, his colleagues are negatively inclined towards existing cryptocurrencies.

So, on Tuesday, the head of the Federal Reserve Bank of Minneapolis, Neel Kashkari, during his speech at an event in Montana, called cryptocurrencies "a giant trash can."

"Only the authorities of America have the right to createdollars. This limitation is one of the components that makes them valuable. In the world of virtual currencies and cryptocurrencies, there is a huge amount of junk coins, ”he said.

Kashkari also added that cryptocurrencies have becomea tool that allowed "to pull tens of billions of dollars from people's pockets." He spoke positively about the work of the US Securities and Exchange Commission (SEC), which "intervened to put an end to this."

According to Kashkari, over the next 5-10 years, something really worthwhile may appear in the cryptocurrency space, however, all that has been created to date is “blazing trash”.

On the other hand, there are manyfull technological projects. Investors who invested in this industry on time have already paid off their investments in full. In addition, companies such as Facebook, JP Morgan and IBM have already paid attention to the blockchain industry.

Earlier it became known that the Fed reallyexplores the prospects for state digital currency. This was recently announced by Jerome Powell, emphasizing that the signal for action was the Facebook-announced stablecoin project Libra.

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