Neel Kashkari, president of the Minneapolis Federal Reserve, sharply criticized cryptocurrencies, labeling them as “completely useless” and dismissing stablecoins as merely a “collection of meaningless words.” He argued that stablecoins offer no significant advantage over well-known digital payment services like Venmo and that cryptocurrencies fail to meet fundamental real-world requirements. Cryptocurrencies such as Bitcoin and Ethereum have long been a controversial topic; while many financial experts and investors view them as part of the future financial landscape, several government agencies and economic analysts emphasize their risks and uncertainties. Stablecoins, designed to reduce price volatility by being pegged to stable currencies or assets, do not, according to Kashkari, provide tangible benefits to users. The volatility and regulatory challenges within the crypto market have prompted governments and central banks to take measures to oversee the sector. Kashkari’s recent statements reflect a broader trend among central banks adopting a stringent stance against cryptocurrencies. Although cryptocurrencies have highlighted potential innovations in the global financial system, experts note that their unstable nature and susceptibility to fraud have limited widespread acceptance. Future financial policies and regulations will shape this sector’s trajectory, potentially leading to significant changes under tighter supervision and legal frameworks.
Source: coindesk
