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Neel Kashkari is not holding back. The head of the Minneapolis Fed fiercely criticized cryptocurrencies yesterday during a speech in Fargo, North Dakota.
“Cryptos have been around for over a decade and are completely useless,” he declared to the audience at the Midwest Economic Outlook Summit of 2026. Kashkari doesn’t mince words when it comes to digital assets. He compares Bitcoin and its peers to AI tools, which he says have real everyday utility for consumers and businesses. Stablecoins don’t fare any better. “I can send you 5 dollars with Venmo, PayPal, or Zelle,” he said during the Q&A session. “So what can this magic stablecoin do?”
Apparently, not much.
Stablecoin advocates argue for faster and cheaper cross-border transfers. Kashkari isn’t buying it. He points out that these tokens still need to be converted into local currency, creating additional friction and costs. For him, the proponents have yet to present a compelling use case for American consumers. The message is clear: show me concrete utility, not marketing promises.
Kashkari also takes a jab at Kevin Hassett, director of the National Economic Council, who had criticized a New York Fed study on tariffs.
“Another attempt to undermine the Fed’s independence,” the Minneapolis president asserts. He refers to several recent incidents, including a Justice Department subpoena in December concerning the Board of Governors’ construction expenses. “Over the past year, we’ve seen several attempts to compromise the Fed’s independence,” he adds. For Kashkari, central bank independence remains crucial for effective monetary policy. “All advanced economies in the world have an independent central bank,” he reminds.
On the economy, the news is rather good. Inflation has dropped to between 2.5% and 3%, while unemployment has risen from about 3.5% to 4.3%. The Fed is “almost neutral” after cutting interest rates several times over the past two years. More on this topic: Bitcoin Falls to ,000 After Fed.
But back to cryptos.
Last November, Kashkari had already launched a strong attack by comparing the sector to the Beanie Babies bubble of the 1990s. On CNN, he expressed more confidence in the utility of AI, which he believes brings real economic value. Cryptos? Still no convincing purpose. He questions the everyday use of digital assets in the United States. The main application he hears about is circumventing banking regulations like know-your-customer and anti-money laundering rules. An application he describes as “poor” for a Federal Reserve policymaker.
Kashkari did not provide any outlook on future interventions.
In January 2026, he delivered the same message at a conference in Chicago: the cryptocurrency market was a “giant casino.” The extreme price volatility makes cryptocurrencies impractical as a reliable payment method, in his view. This characteristic further reduces their appeal to consumers and businesses. During a CNBC interview in December, Kashkari criticized the excessive speculation surrounding cryptocurrencies. The lack of adequate regulation amplifies the risks for uninformed investors. “People think they’re going to get rich quickly, but the reality is often different,” he said. See also: Dollar Stays Strong After Fed Minutes.
On the sidelines of the Fargo summit, several participants expressed similar concerns. John Williams, president of the New York Fed, echoed Kashkari’s comments. Cryptocurrencies have yet to prove their ability to offer financial stability. “Security and stability are essential for broader adoption,” Williams said.
Kashkari mentioned that the Fed continues to monitor the evolution of the cryptocurrency sector. He remains skeptical but the central bank remains open to exploring underlying technologies like blockchain, only if they can provide tangible added value. No decision on potential development has been announced yet.
The crypto industry is not staying silent in the face of these repeated attacks. Coinbase and Ripple have produced numerous reports showing growing adoption of stablecoins for international payments, particularly in Latin America and Southeast Asia. Circle, the issuer of USDC, claims over $190 billion in monthly transaction volume, mainly for commercial transfers.
Other Fed officials take a more nuanced approach. Michelle Bowman, a member of the board of governors, acknowledged last October the potential of digital assets for financial inclusion. Jerome Powell himself generally avoids making statements as definitive as Kashkari’s, preferring to talk about “regulatory challenges” rather than total uselessness.
