As someone who has spent years immersed in the dynamic world of finance and technology, I find it perplexing when seasoned financial regulators like Neel Kashkari make such misinformed statements about cryptocurrencies. His recent remarks regarding crypto being predominantly used for illicit activities are far from accurate, as evidenced by numerous data sources.
Venture Capitalist Nic Carter disagrees with Minneapolis Federal Reserve President Neel Kashkari’s statement that cryptocurrency is rarely used for legal purposes, as evidence suggests otherwise.
In a post on October 22nd, Nic Carter expressed his disagreement, stating “It’s unfair that something like this should be prohibited” in reaction to Neel Kashkari implying that cryptocurrency is predominantly utilized for illicit activities. Carter found Kashkari’s statements regrettable since he is one of the world’s leading financial regulators.
After posting, Carter provided multiple references contradicting Kashkari’s presumption. Among them was a study from the blockchain data company Chainalysis, which identified that a mere 0.34% of all cryptocurrency transactions in 2023 had links to illicit activities.
The report revealed that illicit transactions in crypto peaked in 2019 at just 1.29%.
On October 21st, during a town hall meeting organized by the Chippewa Falls Area Chamber of Commerce, Neel Kashkari, President of the Minneapolis Federal Reserve, expressed his viewpoint that a relatively small number of real-world transactions are currently being conducted using cryptocurrencies.
Kashkari stated that it is rare for individuals to purchase goods and services with cryptocurrency, except in cases where the transactions involve illicit activities such as drug sales.
i think being this wrong should be illegal
— nic carter (@nic__carter) October 21, 2024
According to a recent report from Crypto ISAC, cash continues to be the most commonly used method among criminals for illegal transactions. While cryptocurrencies are often associated with high-level criminal activities such as exchange failures and thefts, their use in these crimes remains relatively minor compared to the prevalence of cash.
Despite challenges in precisely determining the volume of illegal activities within conventional finance, Crypto ISAC approximates that around 2% to 5% of the world’s total Gross Domestic Product (GDP) is laundered globally each year. This equates to a staggering range between $800 billion and $2 trillion.
From the overall transactions, a mere 0.34% is associated with cryptocurrencies. Similarly, the U.S. Treasury agrees with this data, indicating that cash remains the most favored tool in money laundering due to its anonymity, steadiness, and widespread availability.
Over the past few years, Kashkari’s viewpoint on cryptocurrencies has consistently been the same. In February 2024, Kashkari characterized Bitcoin (BTC) as a speculative asset lacking practical value in real-world economic situations. He also cast doubt on its potential to serve as an effective safeguard against inflation.
On October 17th, a paper was released by the Minneapolis Federal Reserve, suggesting that governments may consider either prohibiting Bitcoin or imposing a Bitcoin tax in order to preserve their perpetual budget surpluses.
Read More
Sorry. No data so far.
2024-10-22 12:34