Neel Kashkari, the President and CEO of the Federal Reserve Bank of Minneapolis, shared his views on bitcoin during a conversation with Pensions & Investments Editor-in-Chief Jennifer Ablan at a Linkedin Live event.

Kashkari sees bitcoin as a "consumer protection issue" due to investors' lack of understanding about their cryptocurrency investments. He expressed concern about the high volatility of cryptocurrencies potentially putting people at risk.

Kashkari compared bitcoin to Beanie Babies, suggesting they lack practical utility beyond being speculative assets. He highlighted the absence of legitimate use cases for bitcoin in advanced democracies, contrasting it with the development trajectory of Amazon.

Kashkari's remarks drew criticism, with some arguing that bitcoin has various legitimate use cases, particularly in digital commerce and humanitarian efforts. Kashkari, once more optimistic about cryptocurrency, has grown more critical over time, citing widespread fraud and confusion in the industry, and warning about the proliferation of fraudulent coins.