- Federal reserve Bank President Neel Kashkari comments on Coinbase’s Secretary’s LinkedIn poll
- Banker calls Dogecoin a scam to lure unprotected investors
- Kashkari continues to not trust the cryptocurrency environment and calls it an unstable form of currency
With the increase in the rate of scams in the global digital financial sector, cryptocurrency is only aggravating the number of fraudulent activities. Wherever there is money involved, scams are inevitable, even if they occur at a low rate. The federal bankers of the most popular city of Minnesota, Minneapolis, also have differing points of opinions regarding the activities of cryptocurrency. Neel Kashkari calls out Dogecoin (DGC) to be an absolute scam and nothing else.
Federal Bank President, Neel Kashkari, comments on LinkedIn poll
Neel Kashkari, who is the President of the Minneapolis Federal Reserve Bank, has always been against the idea of cryptocurrency. A recent LinkedIn poll made by the Chief Legal Officer and Corporate Secretary at Coinbase, Paul Grewal, asked the community about the correct pronunciation of the cryptocurrency Doge. Kashari replies to the poll and calls the currency a ponzi. According to him, digital currencies like Bitcoin (BTC) do not possess the functions of stable fiat money. He supported the crack down decision of the Securities and Exchange Commission (SEC) on initial coin offerings.
The Federal Open Market Committee (FOMC) is a group of monetary policy formation for the United States. Kashkari was excluded from this group this year. Not being a part of the FOMC this year, Kashari opposes the surge in the interest rates
Cryptocurrency takes a toll on bankers
Coins like Dogecoin (DGC) witnessed a sharp increase in the prices after influential tweets made by Elon Musk about accepting DGC as a payment for purchasing Tesla in the future. However, when Elon went back on this tweet, the fall hit the cryptocurrency base hard. It plunged the lowest after unfavourable tweets by the Tesla CEO. Hence, the rising concerns of the bankers of the State justify the cause. Cryptocurrency market cannot be affected by just a few tweets. Crypto is supposed to have a decentralized mechanism with no sole power controlling it. Fluctuations in coins like DGC and BTC fall against the core principles of cryptocurrency.
There are many, like Kashkari, who are still voicing their opinions strongly against cryptocurrency even after the realization of its futuristic development and what it can do to the economy. The scams and the instability is the primary con of cryptocurrency.