30s Summary

Minneapolis Federal Reserve President Neel Kashkari, a known critic of cryptocurrencies, recently expressed a willingness to keep an open mind about the sector. However, Kashkari criticised the industry’s lack of mainstream success and adoption, questioning its utility in the real economy. The tough stance of the Federal Reserve towards cryptocurrencies, which Kashkari is part of, might change with President Donald Trump promising to support the crypto industry.

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Minneapolis Federal Reserve President Neel Kashkari has long been a vocal critic of Bitcoin and other cryptocurrencies, at times even referring to them as worthless and nonsense. However, recently after a lengthy chat with CoinDesk, he stated that he is willing to keep an open mind about it.

Kashkari, a former banker, seems to find it hard to put a finger on the practical use cases of cryptocurrencies. He believes that despite its continued push for mainstream acceptance, the industry hasn’t achieved notable success. He also questioned the utility of digital currencies given that there has been minimal widespread adoption despite being around for more than a decade.

Kashkari, who was born and raised in Ohio, hinted at the seemingly slow pace of cryptocurrency adoption. He maintained, “what does it actually do in the real economy”, given that it’s been 12 years since the release of the Bitcoin white paper that began the crypto revolution.

Despite a few hitches, cryptocurrencies have found their way into U.S. investment portfolios. Though, a connection to the conventional financial system has been a struggle due to strong resistance from the federal government. The Federal Reserve, which Kashkari is a part of, partially oversees this traditional system.

However, this scenario could change as President Donald Trump emerged victorious in the recent elections. He pledged to support the crypto industry in the U.S. and replace the Securities and Exchange Commission Chair Gary Gensler, who isn’t viewed favorably by many in the crypto sector.

Rumors suggest that Elon Musk, a famous crypto enthusiast, is part of a group that wants Trump to weaken the influence of the Federal Reserve. Asked if he would resign when Trump’s new administration takes over in January, current Fed Chair Jerome Powell promptly answered with a “no”.

Editor: Nick Baker.