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

Federal Reserve Bank of Minneapolis President Neel Kashkari has dismissed cryptocurrencies and stablecoins as lacking practical value, describing the sector as “utterly useless” more than a decade after its emergence. Speaking at the 2026 Midwest Economic Outlook Summit in Fargo, North Dakota on Thursday, Kashkari contrasted digital assets with artificial intelligence, arguing that AI has clear long-term economic promise for the United States.

Addressing the audience, he noted that while many people now use AI tools such as ChatGPT or Gemini, far fewer rely on Bitcoin for everyday transactions. He said crypto has failed to demonstrate meaningful utility despite its longevity.

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Do Stablecoins Improve Existing Rails?

Kashkari also questioned whether stablecoins improve upon existing payment systems. He argued that services such as Venmo, PayPal and Zelle already allow users to transfer small sums easily, asking what additional function a “magical stablecoin” would provide. 

While some advocates promote stablecoins as cheaper and faster for cross-border transfers, Kashkari said such benefits are not directed at US consumers and still require conversion into local currency for daily purchases, which can add costs.

His position diverges from that of the Trump administration, which has supported Bitcoin and regulated dollar-backed stablecoins as tools to strengthen the dollar’s global role. Treasury Secretary Scott Bessent has argued that regulated stablecoins could reinforce the greenback’s reserve currency status, and President Trump signed an executive order in March to establish a strategic Bitcoin reserve.

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