Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, delivered a sharp critique of cryptocurrencies and stablecoins, arguing that digital assets have failed to demonstrate meaningful real world utility. Speaking at the 2026 Midwest Economic Outlook Summit in Fargo, North Dakota, Kashkari described crypto as “utterly useless” and contrasted it with technologies such as artificial intelligence, which he said hold clearer economic promise.
Kashkari pointed to the widespread adoption of AI tools in everyday professional life as evidence of tangible value creation. He asked attendees how many had used AI platforms in the past week, then followed by asking how many had used bitcoin to buy or sell goods. The comparison, he suggested, highlighted the gap between technological experimentation and practical integration into daily commerce.
Turning specifically to stablecoins, Kashkari questioned whether they offer any improvement over existing U.S. payment systems. He argued that consumers can already send and receive digital payments efficiently through platforms such as Venmo and other established financial applications. In his view, stablecoins do not provide a clear advantage for domestic users, particularly when factoring in conversion steps and transaction costs.
Supporters of stablecoins frequently cite faster and cheaper cross border transfers as a primary benefit. Kashkari acknowledged that adoption in certain emerging markets has grown but maintained that the technology still faces practical hurdles. He noted that even if funds are transferred instantly in digital dollar form, recipients often must convert them into local currency to complete everyday transactions such as purchasing groceries, potentially incurring additional fees.
His remarks come at a time of increasing policy debate in Washington over the role of digital assets in the U.S. financial system. While some regulators and lawmakers have expressed caution about crypto market risks, others have promoted regulated dollar-backed stablecoins as a strategic extension of U.S. financial influence. Treasury Secretary Scott Bessent has argued that compliant stablecoins could reinforce the global role of the dollar in digital payments and settlement infrastructure.
President Donald Trump has also taken a supportive stance toward digital assets, including signing an executive order earlier this year to establish a strategic bitcoin reserve. That initiative reflects a broader push within parts of the administration to position the United States as a leader in digital asset innovation.
Kashkari’s comments underscore a persistent divide among policymakers regarding the economic relevance of crypto technologies. While blockchain advocates emphasize efficiency gains, financial inclusion, and programmable settlement, some central bank officials remain unconvinced that these benefits outweigh existing payment capabilities and regulatory complexity. The debate over stablecoins and broader crypto adoption continues as lawmakers weigh new frameworks for oversight and integration within the U.S. financial system.
