Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, recently expressed pointed criticisms of cryptocurrency while reinforcing the autonomy of the Federal Reserve during remarks delivered in Fargo, North Dakota.
During his address at the 2026 Midwest Economic Outlook Summit, Kashkari questioned the tangible value of digital assets, declaring, “crypto has been around for more than a decade and it’s utterly useless,” as reported by Bloomberg.
He drew a distinction between cryptocurrencies and artificial intelligence tools, pointing out that the latter have proven to provide clear, everyday benefits for both consumers and businesses.
Kashkari dismissed the purported advantages of stablecoins, asserting that they do not significantly enhance existing payment systems. “I can send any one of you $5 with Venmo or PayPal or Zelle,” he remarked during a subsequent question-and-answer session. “So what is it that this magical stablecoin can do?”
While acknowledging assertions that stablecoins could facilitate faster and cheaper cross-border transactions, Kashkari contended that users still need to convert digital tokens into local currency for everyday purchases, resulting in additional friction and cost. He emphasized that advocates have yet to present a compelling use case for U.S. consumers.
In addition to his discussion on digital assets, Kashkari addressed criticisms from Kevin Hassett, Director of the National Economic Council, regarding a New York Fed study on tariffs. He characterized these remarks as “another step to try to compromise the Fed’s independence.”
“Over the last year, we’ve seen multiple attempts to try to compromise the Fed’s independence,” he articulated, referencing a December subpoena from the Department of Justice directed at the Board of Governors concerning building expenses.
Kashkari highlighted that the independence of central banks is essential for effective monetary policy. “Every advanced economy in the world has an independent central bank,” he stated, asserting that policy decisions yield the best outcomes for the public when grounded in data and analysis rather than influenced by short-term political agendas.
On the state of the economy, Kashkari noted a reduction in inflation to between 2.5% and 3%, alongside a rise in unemployment from approximately 3.5% to 4.3%. He remarked that the Fed is “pretty close to neutral” following multiple interest rate cuts over the past two years.
Kashkari: Crypto Comparable to the ‘Beanie Babies’ Bubble
In a prior statement last November, Kashkari reiterated his criticisms, likening the cryptocurrency sector to the 1990s Beanie Babies bubble and asserting that it continues to lack significant economic utility.
During an interview on CNN, he expressed greater confidence in the applicability of artificial intelligence, which he perceives as delivering tangible economic value, in contrast to cryptocurrency, which has not demonstrated a compelling purpose.
Kashkari questioned the practical usage of digital assets in the U.S., noting that the predominant application he encounters relates to circumventing banking regulations such as know-your-customer and anti-money-laundering rules—a use he deemed “lousy” for a Federal Reserve policymaker.
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