Fed’s Neel Kashkari Labels Crypto ‘Utterly Useless,’ Dismisses Stablecoins as ‘Buzzword Salad’
Minneapolis Fed President Questions Real-World Utility of Cryptocurrencies, Highlights AI’s Economic Potential
In a candid assessment delivered at the 2026 Midwest Economic Outlook Summit in Fargo, North Dakota, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, delivered a critical verdict on cryptocurrencies, including bitcoin and stablecoins. Kashkari described these digital assets as “utterly useless,” arguing that they have failed to demonstrate practical utility for everyday consumers, especially when compared to the emerging promise of artificial intelligence (AI) technologies.
Cryptocurrencies Lag Behind Everyday Tech
Kashkari challenged the audience to consider the tangible benefits of crypto by asking two stark questions: how many had used AI tools like ChatGPT or Gemini recently, and how many had engaged in buying or selling with bitcoin. The room reportedly showed widespread adoption of AI tools but scant engagement with cryptocurrencies in everyday transactions.
“Crypto has been around for more than a decade, and it’s utterly useless,” Kashkari asserted, emphasizing that unlike blockchain-based currencies, AI holds significant long-term promise for boosting the U.S. economy.
Stablecoins Face Skepticism on Practical Payments Use
Turning specifically to stablecoins—cryptocurrencies pegged to stable assets such as the U.S. dollar—Kashkari was dismissive. He referred to the hype around stablecoins as “buzzword salad” and questioned their value proposition over established digital payment platforms like Venmo. He challenged proponents to identify what stablecoins enable consumers to do that they cannot already accomplish using existing payment methods.
While acknowledging that stablecoins might facilitate cheaper, faster cross-border payments, Kashkari highlighted inherent limitations. “The benefits just aren’t for U.S. consumers,” he said, noting that recipients still face costly and cumbersome currency conversions when using stablecoins for everyday purchases like groceries. He acknowledged increased adoption in emerging markets but underlined ongoing technical challenges that must be resolved before stablecoins can fulfill their touted potential.
Views Contrast with Trump Administration’s Crypto Strategy
Kashkari’s skepticism stands in sharp contrast to previous U.S. government attitudes, especially under the Trump administration. That government faction enthusiastically promoted bitcoin and regulated U.S. dollar-backed stablecoins as strategic financial instruments designed to reinforce the U.S. dollar’s dominance in global payments.
Treasury Secretary Scott Bessent, for example, advocated stablecoins as a mechanism to strengthen American financial influence worldwide. In 2025, President Donald Trump signed an executive order initiating a strategic bitcoin reserve—an initiative championed by officials including Bessent.
Regulatory Moves and Market Context
Meanwhile, regulatory bodies like the U.S. Securities and Exchange Commission (SEC) have taken quietly significant steps that could influence stablecoin usage by broker-dealers. Recent guidance suggests allowing stablecoins to be counted more favorably in capital regulations, potentially expanding their role within institutional finance.
Despite such moves and ongoing market interest—bitcoin recently trading near $68,000—Kashkari’s comments underscore the ongoing debate over the real-world value and adoption barriers of digital currencies.
Looking Ahead: AI vs. Crypto in the U.S. Economy
As AI adoption accelerates across industries and consumer services, Kashkari’s remarks reflect a broader policy and economic discussion: whether emerging technologies like cryptocurrencies can transition from speculative assets to foundational economic tools, or whether their promise will be overshadowed by other innovations.
For now, the Minneapolis Fed president remains clear in his assessment: while AI offers "real long-term potential" for the U.S. economy, cryptocurrencies have yet to cross the threshold from novelty to necessity.
This article was sourced from CoinDesk reporting and related market analysis as of February 19, 2026.