As a seasoned crypto investor with over a decade of experience navigating this ever-evolving digital landscape, I find it disheartening to see such misinformed and misleading statements from individuals like Neel Kashkari. His characterization of cryptocurrencies as solely useful for illicit activities is not only factually incorrect but also harmful to the progress and legitimacy of this industry.
Minneapolis Federal Reserve President Neel Kashkari, known for comparing Bitcoin to collectible toys like Beanie Babies in the past, finds himself in another controversy by suggesting that cryptocurrencies serve primarily for purchasing illicit goods or engaging in unlawful activities.
At a recent gathering in Wisconsin, moderated by the Chippewa Falls Area Chamber of Commerce, I shared my perspective on the crypto market. I stated that, from my observation, there appears to be relatively limited activity or transactions taking place within this digital currency sphere.
“They’re not paying for goods and services using crypto […] It almost never happens unless people are buying drugs or other illegal activities.”
The comment, which echoes unsubstantiated claims from other crypto skeptics in government in the past, didn’t go down well on X.
In a response dated October 22nd, Castle Island Ventures partner Nic Carter expressed the opinion that such blatant mistakes ought to be considered unlawful.
Carter emphasized that it was particularly concerning when Kashkari made incorrect statements, given his status as one of the “most influential ten financial regulators globally.
Hailey Lennon, a partner at Brown Rudnick, joined the discussion, expressing her disagreement with Kashkari’s off-target remarks about the usage of cryptocurrencies.
In her October 22nd post on X, she emphasized that authentic crypto initiatives have advanced anti-money laundering protocols to combat such activities. On the other hand, physical cash is often favored for financing illegal drug trafficking and unlawful activities.
“We’ve been fighting this false narrative for a decade.”
Kashkari has been critical of Bitcoin over the long term, echoing sentiments that have also been expressed by opponents like Senator Elizabeth Warren and Representative Brad Sherman.
However, blockchain data suggests the Fed president is wrong.
According to a January 18th report by the blockchain data company, Chainalysis, only about 0.34% of all cryptocurrency transactions carried out in the year 2023 are associated with some form of illicit activities.
Notably, illicit transactions in crypto peaked in the last six years in 2019 at just 1.29%.
Kashkari’s comments just one day after the Federal Reserve Bank of Minneapolis suggested that assets such as Bitcoin should be taxed or banned to help governments maintain deficits on their budgets.
In May, he said crypto assets and central bank digital currencies (CBDCs) were a “bunch of handwaving world salad,” adding that digital assets can’t do anything modern payment apps like Venmo can’t already.
In February 2020, he likened Bitcoin and the wider crypto market to a “giant garbage dumpster” and later described Dogecoin (DOGE) as nothing more than a Ponzi scheme.
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2024-10-22 08:01