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Fed’s Neel Kashkari labels cryptocurrency as ‘entirely ineffective,’ refers to stablecoins as ‘meaningless jargon.’
The Minneapolis Fed president stated that stablecoins do not surpass Venmo and contended that cryptocurrencies fail fundamental real-world evaluations.
Minneapolis Federal Reserve Bank President Neel Kashkari (Fox News)
Key points:
- Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, labeled cryptocurrencies, including bitcoin and stablecoins, as “entirely worthless” when compared to the evident economic potential of AI technologies.
- Kashkari contended that stablecoins do not provide substantial benefits over current payment methods like Venmo for American consumers and continue to encounter technical and conversion challenges, particularly for routine purchases.
- His doubts stand in contrast to the Trump administration’s stance, which has supported bitcoin and regulated dollar-pegged stablecoins as strategic assets to enhance the dollar’s worldwide influence and U.S. financial power.
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, expressed a forthright view on digital currencies, asserting that cryptocurrencies, including bitcoin and stablecoins, have not yet demonstrated practical utility.
Addressing the 2026 Midwest Economic Outlook Summit in Fargo, North Dakota on Thursday, he compared the practical uses of AI tools with those of cryptocurrencies.
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“Crypto has existed for over ten years, and it’s entirely useless,” he remarked, while AI “holds genuine long-term promise for the U.S. economy.”
After inquiring if attendees had utilized AI tools like ChatGPT or Gemini in the previous week, Kashkari posed a follow-up question: “Raise your hand if you’ve engaged in buying or selling with bitcoin.”
When the topic shifted to payments and stablecoins, Kashkari expressed doubt that the technology enhances the current financial infrastructure. “I hear these terms and I think it’s just, it’s like a buzzword salad,” he stated. “What can I achieve with a stablecoin that I can’t do with Venmo today?”
When pressed about stablecoins being utilized for more affordable and quicker international payments, Kashkari countered that advocates readily acknowledge those advantages are not designed for U.S. consumers. While he recognized that usage in developing nations is increasing, he noted that the technology still encounters technical difficulties.
Although proponents of stablecoins tout immediate transfers, he indicated that recipients still need to convert into local currency for daily expenditures such as grocery shopping, which can incur high costs.
Kashkari’s doubts sharply contrast with the Trump administration, which has increasingly advocated for bitcoin and U.S. dollar-pegged stablecoins as essential strategic instruments.
Treasury Secretary Scott Bessent claimed that regulated stablecoins could extend the dollar’s supremacy in global transactions and bolster its role as the world’s reserve currency, thereby enhancing U.S. financial authority. Additionally, President Trump signed an executive order in March to establish a strategic bitcoin reserve, a move that Bessent supported.
