The fed called cryptocurrency “gigantic garbage dump”

In the Bank name-calling of the stock market there was another new term. This time the President of the US Federal Reserve in Minneapolis Neil Kashkari called the crypt “gigantic garbage dump”. During a speech at the event, Montana Eco 2020 Kashkari expressed his negative opinion about the usefulness of cryptocurrencies. Even if you regard Bitcoin as an investment asset, Neal said that would not give his infant daughter bitcoins. According to him, instead of the cryptocurrency he would choose Treasury bonds.

Neil Kashkari also considers the US dollar the ideal candidate for any savvy investor.

The reason the dollar has value is the fact that the US government has a legal monopoly on the production of the dollar. In the world of virtual currencies and crypto-currencies thousands of junk coins. Roughly speaking, people cheated tens of billions of dollars, and now the Commission on securities and exchange Commission finally began to fight it.

However, despite the praise Kashkari, the Treasury bonds, in fact the most profitable asset of the last decade is still Bitcoin. The largest cryptocurrency only for 2019 brought holleran 85 percent of the profits, while bond yields are very far from such performance.

Read on: Bitcoin again bypassed all traditional assets for profitability. What's next?

The Power Of Bitcoin. Source: 2Биткоина

In just a month and a half of the new 2020 Bitcoin has risen by 40 percent, and the overall positive dynamics of the entire stock market. Yesterday, the total capitalization of the stock market once again surpassed $ 300 billion. We already wrote about this in our Telegram channel.

Cryptocurrency is just the hype of scams

According to Kashkari, even though he doesn’t like Bitcoin, already in the next 10-20 years can appear really useful cryptocurrency. However, it does not suit the current state of the market.

Today nothing hinders fraud in the creation of new useless coins. Until I see more hype than something really useful.

Craig Wright. Source: 2Биткоина

The Kashkari may not think positively about bitcoin, but the emergence of projects by type Libra from Facebook is clearly to provoke the fed. The Governor fed Governor Lael Brainard speak have been told that the Bank is considering launching Fedcoin.

If you set aside private projects, the panic in the banking sector in the U.S. and Europe also leads the project of the digital currency in China. Financial stakeholders of the EU from France and Germany have urged the European Central Bank (ECB) to consider the establishment of a sovereign digital currency.

The prospects for the digital currency China

According to the Financial Times, China’s Central Bank has applied for 84 patents in connection with plans to launch a digital currency electronic payments (DCEP).

China’s Central Bank. Source: Twitter

These patents focus on developing protocols that will control the release of digital and liquidity of the yuan. In addition, they will be ready to use platforms suitable for use in interbank payments. These platforms will help integrate digital yuan into the existing infrastructure of retail banking services in China.

Useful to know: What will happen if China will start to dominate in the field of digital currencies?

China’s President XI Jinping. Source: Bitcoinist

Some patents show plans for the creation of programmed controls over inflation. In other can be viewed the plans for the establishment of a mediation service, which will allow customers to Deposit — that is, the Deposit — Fiat and digital output the yuan.

Another situation shows that while some call cryptocurrency poison, or dump the useless invention, other seriously work on their own projects and have the advantage in this race. The only question is who will take leadership over the industry, the state of digital currencies. Although so far the winner seems obvious.

In our cryptodata loyal hontarov you will find lots of other useful information.

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