Share this article
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.
By Stan Higgins
Updated Sep 11, 2021, 1:18 p.m. Published May 9, 2017, 6:15 p.m.
Make us preferred on Google
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.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
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.
Image Credit: The Wharton School/Flickr
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
Більше для вас
Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
Що варто знати:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
Top Stories
