Senior Federal Reserve Official Who Blasted Bitcoin Now Says He’ll Have an Open Mind

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Minneapolis Federal Reserve President Neel Kashkari has long been a loud critic of bitcoin (BTC) and the rest of cryptocurrencies, calling them “worthless,” “fraudulent” and “nonsense.”
But now, he says his view could be swayed.
“I will have an open mind,” Kashkari told CoinDesk during a brief conversation in New York City on Tuesday.
Despite that pledge, the Ohio-born-and-raised banker continued to question the point of cryptocurrencies during the conversation. The industry has been around a long time without reaching widespread adoption, showing a lack of utility, he said.
“Other than as a speculative asset, what does it actually do in the real economy?” Kashkari said. “It’s been a dozen years.” (The Bitcoin white paper that sparked the crypto revolution came out 16 years ago.)
Crypto has struggled to gain a foothold in the U.S. (besides serving as an asset in investment portfolios). The federal government’s stiff resistance has made it hard to connect crypto to the conventional financial system, which is partly overseen by the Fed.
That might be poised to change. Last week, Donald Trump won the presidential election, promising to support the crypto industry in the U.S. and fire Securities and Exchange Commission Chair Gary Gensler, who is widely viewed by crypto insiders as an impediment.
Some in Trump’s circle, including crypto-fan Elon Musk, reportedly want him to dramatically weaken Kashkari’s employer, the Fed. Trump tried to fire current Fed Chair Jerome Powell in 2018, causing stocks to tank. Asked whether he would resign under Trump’s new administration, which begins in January, Powell said “no” last week.
Edited by Nick Baker.
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Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk’s Markets Daily show. Helene is a graduate of New York University’s business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.