Fed Official Dismisses Crypto’s Real-World Use, But Analysts See Growth Ahead

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, recently expressed skepticism about the practical use of cryptocurrency.

Speaking at an event in Wisconsin, Kashkari remarked that while cryptocurrencies are being traded frequently, their use in everyday transactions is extremely rare. According to him, cryptocurrencies are almost never used to buy goods or services, except for illegal activities like purchasing drugs.

Kashkari, a long-time critic of digital currencies, has previously criticized the industry, calling it largely filled with “fraud, hype, and noise” in 2022.

Earlier this year, he further questioned Bitcoin’s value, dismissing it as a poor tool for both investment and currency, comparing its speculative nature to that of collectible toys like Beanie Babies.

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However, not everyone shares Kashkari’s negative outlook. Adam Cochran, a prominent figure in the cryptocurrency space, has challenged these views, labeling them “daft and shortsighted.” Cochran highlighted the recent acquisition of stablecoin startup Bridge by payment giant Stripe, a deal worth $1.1 billion—the largest in the cryptocurrency sector so far.

He emphasized that stablecoins are one of the most significant applications of blockchain technology, as they reduce costs for remittances, cut out middlemen, and help strengthen the U.S. dollar’s position in global trade.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.