Minneapolis Federal Reserve President Neel Kashkari, who has long been critical of Bitcoin (BTC) and cryptocurrencies, has suggested a change in perspective. Surprisingly, Kashkari recently spoke in New York City saying he was willing to reconsider his stance on digital assets.
Kashkari, who has previously branded cryptocurrencies as “worthless,” “fraud,” and “nonsense,” hinted that his perspective could change. “I’m going to keep an open mind,” he said. Despite this newfound openness, Kashkari remained skeptical, questioning the practical use of crypto, saying, “What does it actually do in the real economy, other than being a speculative asset? It’s been a dozen years.” Kashkari’s comment speaks to the broader hesitancy of the U.S. financial administration to integrate crypto into the traditional financial system, which is largely overseen by the Federal Reserve.
Kashkari’s comments come amid significant political shifts that could impact the regulatory landscape of cryptocurrencies. With Donald Trump’s recent election victory, expectations are growing that he will take measures to bolster the crypto industry and remove perceived obstacles, including SEC Chairman Gary Gensler, which crypto advocates often see as an impediment to the industry’s growth.
Some of Trump’s allies, including crypto enthusiast Elon Musk, are also said to be in favor of reducing the Fed’s power. Trump previously tried to fire current Fed Chair Jerome Powell in 2018, a move that shook markets.
*This is not investment advice.