Minneapolis Federal Reserve President Neel Kashkari talked about cryptocurrencies, including bitcoin, at a Town Hall event in Kashkari, Montana, on Tuesday. He took office as president of the Federal Reserve Bank of Minneapolis in January 2016.

Washington Companies CEO Larry Simkins moderated the Q&A session at the event. He asked Kashkari: “Your daughter is a year old and if I want to buy her a gift, would you prefer I give her a low yielding Treasury bond or a bitcoin?” The Minneapolis Federal Reserve president laughed and then replied, “Between those two, I think low yield treasury bond.” Kashkari elaborated:

The bitcoin and cryptocurrency, it’s basically, it’s like a giant garbage dumpster. The reason that the dollar has value is because the U.S. government has a legal monopoly on producing the dollar.

Minneapolis Federal Reserve President Neel Kashkari.
He continued: “If you go in your basement and start photocopying your dollar bills, the Secret Service will come and knock on your door and arrest you. Only the U.S. government has the authority to produce dollars, scarcity is in part what makes them valuable.”

Thousands of Garbage Coins
Kashkari further said: “Well, the virtual currency, cryptocurrency world, there are thousands of these garbage coins out there, thousands of them literally, people have been fleeced for tens of billions of dollars, and finally, the SEC is getting involved in cracking down on this, but people are just getting fleeced by nonsense.”

Sourced through Scoop.it from: news.bitcoin.com