Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, faced backlash after claiming most cryptocurrency transactions involve drugs or illegal activities.

Kashkari's Statements and Their Aftermath

During a town hall meeting in Chippewa Falls, Wisconsin, Kashkari noted that while cryptocurrencies are gaining popularity, legitimate transactions using them remain rare. "They’re not paying for goods and services using crypto. It almost never happens, unless people are buying drugs or other illegal activities," Kashkari said.

Experts Respond

Critics quickly responded to Kashkari's remarks. Hailey Lennon, a crypto law analyst, highlighted that legitimate crypto projects have state-of-the-art anti-money laundering measures. Investor Nic Carter cited data showing only 0.34% of crypto transactions in 2023 were linked to illegal activities, accusing Kashkari of spreading disinformation.

Central Bank Digital Currency Projects

Kashkari also addressed central bank digital currencies, stating they offer nothing beyond existing systems like Venmo or PayPal. He argued there is no evidence a digital dollar would help the unbanked and underserved in the U.S.

Neel Kashkari's comments sparked criticism among experts, who point out that cryptocurrencies are gaining legitimacy and are increasingly used in the economy.