Fed's Kashkari: Bitcoin still has no legitimate use case in developed democracies

On April 7th, Neel Kashkari, the President and CEO of the Federal Reserve Bank of Minneapolis, expressed concern about the consumer risks surrounding the "fraud, speculation, and chaos" surrounding Bitcoin during Thursday's LinkedIn Live event.

He further pointed out that cryptocurrency has been around for over a decade, but there are still no legal use cases in developed democratic countries. Kashkari explained that he believes Bitcoin involves "consumer protection issues" because some investors do not fully understand their cryptocurrency investments.

In addition, he warned that cryptocurrency "is too volatile and could be very harmful to some people." He believes that "there are many fraud, speculation, and confusion surrounding Bitcoin, so from a consumer perspective, I am concerned."

Kashkari compared Bitcoin to Beanie Babies, saying they "have no real use in the economy, except as cute toys that some people like to own and trade."