Minneapolis Fed President Neel Kashkari: "Cryptocurrencies Are Still Completely Useless"

Comparison Between Cryptocurrencies and Artificial Intelligence Minneapolis Fed President Neel Kashkari delivered harsh criticism of the cryptocurrency market during his speech at the 2026 Midwest Economic Outlook Summit.
Describing Bitcoin and stablecoins as "completely useless," Kashkari argued that these assets have failed to produce tangible real-world benefits despite being available for more than ten years.
Kashkari drew a striking comparison between the development of cryptocurrencies and artificial intelligence technologies.
He noted that AI has rapidly found active use in daily life, asking participants if they had used tools like ChatGPT or Gemini in the past week.
He then questioned whether anyone had purchased goods or services using Bitcoin, emphasizing that cryptocurrencies have failed to become a widespread means of payment.
Stablecoins and Existing Payment Systems Stablecoins also faced criticism from Kashkari.
He stated that existing digital payment applications are sufficient for users in the United States, asking, "What can I do with a stablecoin today that I cannot do via Venmo?" Kashkari approached the promised advantages of speed and low cost in cross-border money transfers with caution, suggesting such benefits might only be meaningful in developing countries with weak financial infrastructure.
He also reminded the audience that individuals receiving payments in stablecoins often have to convert them back into local currencies for daily expenses, a process that creates additional costs and operational challenges for users.
Divergence from the Trump Administration Kashkari’s remarks highlighted a clear divergence from the new U.S.
administration, which has adopted a more moderate stance toward cryptocurrencies.
While U.S.
Treasury Secretary Scott Bessent has argued that regulated dollar-backed stablecoins could strengthen the dollar's global dominance, President Donald Trump has announced plans to take steps toward creating a strategic Bitcoin reserve.
These statements from the Fed indicate that economic and political debates regarding cryptocurrency regulations and use cases are likely to deepen in the coming period.