Although Bitcoin and its competitors have been going from strength to strength of late, with the total market capitalization of the entire crypto industry hitting an all time high of 700 billion, Neeo Kashkari (Minneapolis Fed President) said on Tuesday that he is still not convinced that digital currencies of the world hold a credible threat to the U.S dollar.

Over the past year, the cryptocurrency space has received a lot of media attention and, as a result, there has been a huge boom in the industry. At the moment, a large number of the coins in the crypto space boast of a market cap that exceeds $1 billion, with that value on an upward trajectory.

Kashkari mentioned that while cryptocurrencies may represent a threat to one another, they are not a threat to the U.S currency.

While appearing publicly in Minnesota, the Fed President added a comment that said,

I don’t see Bitcoin as a credible competitor to the dollar in the United States of America, and the reason is the barrier of entry to you creating your own coin and me creating my own virtual currency … is zero.

He added,

So there’s all these new alt coins being created every day, and while you may say there’s only so many Bitcoins that are going to be mined, if it gets muddled with all these other alt coins you can still have inflation, because you don’t know which ones to trust… i just think this has a long way of going before we know how this shakes out.

However, Bitcoin still remains a favorite in the cryptocurrency space with a market cap of $249 billion, double the value of its closest competitor, Ethereum. Despite a recent sharp decline, Bitcoin posted a record growth of 1500 percent in 2017, and is now valued at around $14,000 per coin according to CoinMarketCap.

Furthermore, Kashkari mentioned that although the cryptocurrency industry and Bitcoin are capable of playing a greater role in the future onat a global scale, there are still unanswered questions about the entire industry that require answers.

Do you think the Fed President is right about Bitcoin not being a credible competitor to the US dollar? Share your thoughts and opinions in the comment section.