Neel Kashkari is the president of the Federal Reserve Bank of Minneapolis city. The Kansas City banker has recently become the talk of the crypto town due to his recent comments. Kashkari was speaking at the NorthWest Economic Region Annual Summit for the Pacific held in Big Sky. Under his position as the president of the Federal Reserve Bank, he claimed that cryptocurrency is not a trustworthy asset class anymore.
He further added that most of the virtual currencies are garbage and others are nothing more than elaborate Ponzi schemes. He further added that he used to have faith in the crypto market a few years ago. He quoted that 5-6 years ago, the crypto market was not so hyped up, and only the investors with proper knowledge of the technology were allowed into the circle. He also supports the idea that the crypto industry needs better regulatory infrastructure.
Crypto Enterprise Founders Believe Crypto Regulation is Necessary
According to Kashkari, the crypto industry cannot keep moving forward without proper and tailor-made regulatory infrastructure. Jihan Wu, CEO of Bitman, seems to agree with his take on the cryptocurrency market. He is also the founder of Bitman, which is a crypto mining enterprise. He recently told the media that regulations and federal involvement is an essential step for a crypto marker for further development and stability. Wu further added that crypto regulations could save investors from frauds and scams.
Even though many altcoin projects turned out to be scams, it is not fair to consider that all cryptocurrencies are illicit projects. Bitcoin is a cryptocurrency that has gained popularity among the top financial investment firms, including banks. However, Kashkar seems to believe that cryptocurrencies have become a way for investors to support criminal activities like drug markets, dark web activities, money laundering, and prostitution.
It is not surprising to note that there are many cynics like Kashkar who are still not on board with the idea of crypto trading. However, to counter and challenge their opinions, many crypto proponents believe that blockchain-based currencies are going to revolutionize the financial industry forever. One of Apple Inc.’s investors, Steve Wozniak, believes that virtual currencies are going to replace gold as a store of value pretty soon. MicroStrategy CEO Michael Saylor has been a known Bitcoin maximalist. He claims that Bitcoin is superior to gold by a factor of 50. Co-founder of Andreessen Horowitz hedge fund, Marc Horowitz, recognizes the potential of cryptocurrencies as a financial innovation.