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The president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, has warned that the Dogecoin (DOGE) cryptocurrency is merely a “Ponzi scheme”, after the official’s previous criticisms.
Specifically, Coinbase Legal Director Paul Grewal generated a questionnaire on Connected In to ask friends about the correct pronunciation for “Doge.” And the most prominent comment belonged to Mr. Kashkari if he quipped that: “The correct pronunciation is pon-zi”.
In reality, this isn’t the first time Mr. Kashkari has “pointed a spear at” cryptocurrencies. In February 2020, the chairman also stated that digital assets such as Bitcoin (BTC) lack the principles to be a viable unit of money. At the exact same time, he also praised the fact that the Securities and Exchange Commission (SEC) has taken many extreme actions to govern ICO projects.
This year, Mr. Neel Kashkari isn’t a part of the FOMC (Federal Open Market Committee). The FOMC is the group responsible for setting monetary policy in the United States. The Fed’s Minneapolis branch will act as a non-permanent member of the FOMC in 2022 before returning to the Committee as a voting member in 2023.
Therefore, Mr. Kashkari won’t be able to vote on monetary policy this season. Besides, he also opposes any step to increase interest rates before 2023. In that the Fed’s overview of speed forecasts published last week, it can be observed that policymakers are targeting interest rate hikes at the end of 2023.
This revised prediction may have contributed to the strong increase of the US dollar (USD). Meanwhile, the stock markets, commodities and even cryptocurrencies are hit hard. The whole cryptocurrency market continued to fall to a huge scale Sunday, together with Dogecoin (DOGE) alone at one point falling 14.22%. Compared to last week’s slight recovery, the industry is still extending the powerful correction.
Earlier this season, meme coins such as DOGE had a very powerful FOMO wave, supported by valuable tweets from Tesla CEO Elon Musk. In January, the community’s interest in Dogecoin in the time eclipsed that of Bitcoin with social media buzz rising by over 1,800%. However, once the cryptocurrency economy went down, DOGE was also severely affected.
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