”Cryptocurrency = Crime?” Federal Reserve Bank Kashkari's statement sparks a flurry of criticism from experts

Federal Reserve Bank of Minneapolis President Neel Kashkari criticizes cryptocurrencies for little use beyond drug and criminal activity
Kashkari, speaking at a town hall event in Wisconsin hosted by the Chippewa Falls Area Chamber of Commerce, said he would be using cryptocurrencies to make payments.
He argued that very few transactions are taking place, saying, "People don't pay for goods and services with cryptocurrencies. It almost never happens unless you're buying drugs or doing illegal activities."
Kashkari's comments are similar to unfounded claims made in the past by other crypto skeptics in the government, and were made by crypto expert X (formerly Twitter) on social media.
Nick Carter, a partner at Castle Island Ventures, said:
Carter responded with X, "A mistake of this magnitude should be illegal." What's even more worrying about Kashkari's erroneous statement is that he is the president of the most important financial regulator on the planet.
Hailey Lennon, a partner at Brown Rudnick, said she was among the 10 people named in the investigation.
Lennon, also via X, criticized Kashkari's statements regarding the incorrect use of virtual currencies. He said, "Legitimate crypto projects should be the first line of defense against money laundering."
"We have a policy of exercising our right to freedom of speech and of using our power to violate international law. In fact, the preferred method of funding drug trafficking and illegal activity is cash," he said, adding that "we have been fighting this false narrative for 10 years."
Kashkari is a Bitcoin skeptic and his comments have been criticized by Senator Elizabeth Warren.
Warren and Rep. Brad Sherman
The claims are similar to those of crypto critics such as Yahoo! Inc. and Yahoo! News. But blockchain data shows Kashkari’s claims are false.
According to a report released on January 18 by blockchain data company Chainalysis, 10% of all cryptocurrency transactions in 2023 are likely to be related to illegal activities.
In particular, illicit cryptocurrency transactions recorded their highest figure in 2019 over the past six years, but even then, they only made up 1.29% of transactions.