Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, delivered a stark critique of cryptocurrencies during his address at the 2026 Midwest Economic Outlook Summit held in Fargo, North Dakota. He asserted that digital assets, including Bitcoin and stablecoins, have failed to demonstrate any practical utility despite being in existence for over a decade.
Kashkari emphasized the contrast between the functionality of artificial intelligence tools and cryptocurrencies, labeling the latter as “utterly useless.” He remarked, “Crypto has been around for more than a decade, and it”s utterly useless,” while highlighting the tangible benefits that AI can bring to the U.S. economy.
During his presentation, Kashkari engaged the audience by asking who had utilized AI tools such as ChatGPT or Gemini recently. He followed this by questioning how many individuals had conducted transactions using Bitcoin. This line of questioning underscored his skepticism regarding the real-world application of cryptocurrencies.
When discussing the potential of stablecoins to enhance payment systems, Kashkari expressed doubt about their ability to improve upon the existing financial infrastructure. He described the terminology surrounding stablecoins as “buzzword salad” and challenged the audience by asking, “What can I do with the stablecoin that I can”t do with Venmo today?”
Kashkari further argued that while advocates tout the benefits of stablecoins for cheaper and faster international transactions, these advantages do not cater to the needs of U.S. consumers. He acknowledged the rising adoption of these technologies in emerging markets but maintained that significant technical hurdles remain. He pointed out that even with the promise of instant transfers, recipients must still convert stablecoins into local currencies for daily expenses, which can incur high costs.
This skepticism from Kashkari sharply contrasts with the stance taken by the Trump administration, which has increasingly supported Bitcoin and U.S. dollar-backed stablecoins as essential tools for financial strategy. Treasury Secretary Scott Bessent has argued that regulated stablecoins could bolster the dominance of the dollar in global financial transactions, reinforcing its status as the world”s reserve currency and enhancing U.S. financial influence.
In March, President Trump signed an executive order aimed at establishing a strategic reserve for Bitcoin, an initiative that Bessent advocated for, reflecting a growing recognition of the potential role cryptocurrencies could play in the future of finance.
