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Minneapolis Fed’s Kashkari Calls Crypto ‘Utterly Useless,’ Questions Stablecoins’ Value

He argued the tokens offer no clear benefit for U.S. consumers compared with existing payment apps.

Overview

  • Speaking at the 2026 Midwest Economic Outlook Summit in Fargo on Feb. 19, Neel Kashkari said cryptocurrencies remain “utterly useless” more than a decade after their launch.
  • He contrasted digital assets with artificial intelligence, saying AI already shows clear everyday utility for consumers and the broader economy.
  • Kashkari dismissed stablecoins for domestic payments, saying services like Venmo, PayPal and Zelle already let users send money instantly.
  • On cross-border transfers, he argued recipients still must convert tokens into local currency to buy essentials, adding cost and friction.
  • He also warned about efforts to erode Federal Reserve independence, citing a DOJ subpoena, as his stance diverges from the administration’s promotion of bitcoin and dollar-backed stablecoins.