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“Minneapolis Fed President States Limited Crypto Transactions Occur, Primarily Involving Drugs”
Neel Kashkari, the president of the Minneapolis Federal Reserve (Fed), stated that nearly no cryptocurrency transactions take place unless they are related to drugs or unlawful activities.
During a town hall meeting in Wisconsin on Monday, Kashkari asserted that cryptocurrencies serve as the currency for drug transactions.
“Very few transactions occur with crypto, unless it involves drugs or illegal actions.”
JUST IN:
Federal Reserve official Kashkari states, “very few transactions happen on crypto, unless it’s drugs or illegal activity.”
— Watcher.Guru (@WatcherGuru) October 21, 2024
At an event organized by the Chippewa Falls Area Chamber of Commerce, the Fed official mentioned that while individuals do buy and sell crypto, “they are not using it to pay for goods and services.”
Kashkari has previously expressed skepticism towards Bitcoin and other digital currencies since assuming the presidency of the Minneapolis Fed in 2016.
In 2022, he criticized the sector for being predominantly characterized by “fraud, hype, and noise.”
Earlier this year, Kashkari questioned the practicality of Bitcoin, arguing that it fails to serve as either a currency or an investment. Furthermore, he dismissed the largest cryptocurrency as a speculative tool, akin to Beanie Babies.
Crypto Advocates Respond to Fed President’s Critiques
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In response to the Fed president’s comments regarding the asset class, crypto experts took to X to voice their objections. Nic Carter, a partner at Castle Island Ventures, reacted to Kashkari’s remarks,
“I think being this wrong should be illegal.”
i think being this wrong should be illegal https://t.co/8zDIIR2sFm
— nic carter (@nic__carter) October 21, 2024
Another supporter of cryptocurrency, legal analyst Hailey Lennon, noted that there has been an ongoing struggle against such misleading narratives for a decade. She emphasized that funding for drug trafficking and illegal activities is typically conducted using physical cash rather than cryptocurrencies.
“Legitimate crypto projects in the space have state of the art anti-money laundering policies to prevent this.”
Legitimate crypto projects in the space have state of the art anti-money laundering policies to prevent this.
Physical cash is the preferred method for funding drug trafficking and illegal activity
We’ve been fighting this false narrative for a decade https://t.co/iKmsC8BJLA— Hailey Lennon (@HaileyLennonBTC) October 21, 2024
Moreover, data from a recent survey conducted by Pew Research Center shows that only 17% of Americans invested, traded, or owned digital assets in 2023.
Additionally, a 2024 survey from European investment manager Nickel Digital indicates that 80% of institutional investors and wealth managers are looking to increase their investments in digital assets in the upcoming months. This trend has gained momentum, especially following the approval of spot Bitcoin and Ether ETFs by the SEC earlier this year.
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