The post Fed’s Kashkari says very few transactions actually happen on crypto, except for illegal activity appeared on BitcoinEthereumNews.com.

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, hammered crypto again, claiming that legitimate transactions are rare. According to him, the only reason most people touch crypto is for illegal purposes like drugs. “People are buying and selling crypto,” he said, but they aren’t using it to pay for things legally. Unless it’s drugs or illegal stuff, he claimed, crypto barely sees any action. Kashkari has been a long-time critic of crypto. He’s been loud about his belief that the entire industry is full of hype, scams, and fraud. His comments date back to at least 2022 when he compared Bitcoin to nothing more than a speculative fad, likening it to Beanie Babies. Back then, he slammed Bitcoin for having no real value, pointing out that it’s mostly used for speculation. A decline in crypto crimes Meanwhile, data shows that the value of crypto sent to illegal addresses fell to $24.2 billion in 2023, down from $39.6 billion in 2022. But even with that drop, the illegal portion of the market still made up 0.34% of total transactions in 2023, compared to 0.42% the year before. Stablecoins, particularly Tether (USDT), have become the tool of choice for criminals. Bitcoin, the original star of crypto, is taking a backseat to these stablecoins due to their stability. Criminals prefer something that doesn’t swing wildly in price while they move money around. In 2023, stablecoins were at the center of illegal activities in the crypto space, taking the crown from Bitcoin. Ransomware and darknet markets continue thriving though. In 2023, ransomware attacks pulled in about $1.1 billion in crypto payments. Meanwhile, darknet markets, where people buy drugs and other illegal things, racked up sales of around $1.6 billion. Kashkari on Fed’s rate cuts While Kashkari’s harsh view on crypto remains unchanged,…

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Filed under: News - @ October 21, 2024 9:26 pm