Federal Reserve President Slams Bitcoin

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As an experienced financial analyst, I have closely followed the evolving narrative surrounding Bitcoin and the cryptocurrency industry from various perspectives, including that of central bankers like Neel Kashkari. While it is not uncommon for senior figures in the monetary policy realm to express skepticism towards Bitcoin and its utility, Kashkari’s long-standing criticism of the world’s largest cryptocurrency merits a closer look.

As a researcher examining the financial landscape, I’ve come across Neel Kashkari’s latest perspective on Bitcoin. He asserted that from his standpoint, the world’s leading cryptocurrency by market capitalization holds only “limited” practical significance.

At the Williston Basin Petroleum Conference 2024 on a Wednesday, he expressed his viewpoint that Bitcoin should not be considered as an investment or a currency.

Certainly, Kashkari has been vocal in his criticism towards Bitcoin and the crypto market for quite some time. Back in the early part of this year, he raised doubts about Bitcoin’s purpose due to its inability to serve as a reliable hedge against inflation.

In November 2022, he expressed his view that the concept of cryptocurrencies was irrational after the collapse of the FTX exchange.

In 2021, the Federal Reserve president expressed his skepticism towards the cryptocurrency industry, labeling it primarily as “fraud, hype, and noise.” In a lighter vein, he drew a comparison between Bitcoin and Beanie Babies during the same year.

Rates should remain steady 

Kashkari has also stated that Federal Reserve rates should remain steady for now. 

I came across an intriguing piece of news from U.Today today. The value of a Bitcoin coin surpassed $65,000 for the initial time since early May, following optimistic US inflation figures.

Based on current expectations, the Federal Reserve is predicted to decrease interest rates by at least two percentages points in 2023. Nevertheless, as per Kashkari’s perspective, the central bank requires additional data to determine the direction of inflation.

Before the most recent CPI reading, he did not even rule out another rate hike.

Jerome Powell, the Federal Reserve chairman, has emphasized the importance of showing restraint when tackling inflation. According to him, the present Federal Reserve approach is sufficient.

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2024-05-15 22:22