Fed's Kashkari Says Blockchain 'Has More Potential' Than Bitcoin

The president of the Federal Reserve of Minneapolis took aim at bitcoin today, criticizing the ease at which new cryptocurrencies can be created.

May 9, 2017 at 6:15 p.m. UTC
Updated Sep 11, 2021 at 1:18 p.m. UTC

The president of the Federal Reserve of Minneapolis took aim at bitcoin today, criticizing the ease at which new cryptocurrencies can be created.

Neel Kashkari, a former Bush administration official who became president of the Minneapolis Fed in early 2016, gave a speech during the MN High Tech Association 2017 Spring Conference, held this afternoon.

Asked by an attendee about the Fed's position on digital currencies, Kashkari went on to make the following points:

  • The Fed is watching: "This is a topic a lot of people across the Fed are paying attention to and watching how it evolves."
  • His issue is with 'inflation by altcoin': "The problem I have [with bitcoin] is while it says, by design, you're limiting the number of bitcoins that can be created, it doesn’t stop me from creating NeelCoin or somebody from creating Bobcoin or Marycoin or Susiecoin."
  • Blockchain 'has more potential': "I would say the conventional wisdom now is that blockchain, the underlying technology, is probably more interesting and has more potential than maybe bitcoin does by itself."
  • The waiting game continues: "I think it's too early to know where this is going to go ... we'll see – we have a lot to learn."

His comments represent the latest remarks out of the Federal Reserve about digital currencies and blockchain, coming months after the Federal Reserve published its first major research findings on the tech.

Nor is he the latest Fed official to comment on blockchain. In January, Federal Reserve chair Janet Yellen called blockchain an "important technology" during an event appearance.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Korean Police Move to Freeze Luna Foundation Guard Assets: Report

Seoul police are seeking to ban the entity from withdrawing suspectedly embezzled funds.

Seoul police are seeking to ban the entity from withdrawing suspectedly embezzled funds.

CoinDesk - Unknown
2
CoinDesk - Unknown
Amid Market Downturn, ‘Goblintown’ NFTs Have Their Moment

The goblin-themed PFP collection did over $7 million in sales volume this weekend, fueled by rumors a larger team could be behind the scenes.

The goblin-themed PFP collection did over $7 million in sales volume this weekend, fueled by rumors a larger team could be behind the scenes.

CoinDesk - Unknown
3
CoinDesk - Unknown
Crypto Funds Shrink to Lowest Since 2021 Summer Bear Market

Investors pulled out some $143 million from digital asset funds as confidence in crypto is flailing.

Investors pulled out some $143 million from digital asset funds as confidence in crypto is flailing.

CoinDesk - Unknown
4
CoinDesk - Unknown
How the Metaverse Could Be a Game-Changer for NFT Gaming

Rather than letting players port weapons or powers between games, non-fungible tokens will more likely serve as building blocks for new games and virtual worlds. This piece is part of CoinDesk's Metaverse Week.

Rather than letting players port weapons or powers between games, non-fungible tokens will more likely serve as building blocks for new games and virtual worlds. This piece is part of CoinDesk's Metaverse Week.

CoinDesk - Unknown