Minneapolis Federal Reserve Bank President Neel Kashkari has once again criticized Bitcoin, asserting that the world's largest cryptocurrency by market capitalization has "little" practical use. Speaking at the Williston Basin Petroleum Conference 2024 on Wednesday, Kashkari reiterated his longstanding skepticism, stating that Bitcoin is neither an investment nor a currency.

Kashkari has been a vocal critic of Bitcoin and the broader cryptocurrency industry for years. Earlier this year, he questioned Bitcoin's utility, highlighting its failure to act as an effective hedge against inflation. His disdain for cryptocurrency is not new; following the collapse of the FTX exchange in November 2022, he labeled the entire notion of crypto as "nonsense." In 2021, he disparaged the industry as mostly "fraud, hype, and noise," even comparing Bitcoin to Beanie Babies in a lighthearted jab.

Amidst his criticism of Bitcoin, Kashkari also addressed the Federal Reserve's monetary policy, stating that interest rates should remain steady for now. This comment came as Bitcoin's price surged past the $65,000 mark for the first time since early May, buoyed by encouraging US inflation data.

The Federal Reserve is anticipated to cut rates at least twice this year. However, Kashkari emphasized the need for the central bank to better understand the trajectory of inflation before making further decisions. Before the latest Consumer Price Index (CPI) reading, he did not rule out the possibility of another rate hike.

Fed Chair Jerome Powell has echoed a similar sentiment, stressing the importance of patience in addressing inflation. Powell believes that the current policy stance of the Federal Reserve remains effective in managing inflationary pressures.

Kashkari's remarks underscore the ongoing debate about the role and utility of cryptocurrencies in the financial system, contrasting sharply with the optimism among Bitcoin advocates and investors.