Fed’s Kashkari says crypto is ‘utterly useless’

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, offered a blunt take on digital assets, arguing that cryptocurrencies, including bitcoin BTC$66,486.81 and stablecoins, have yet to prove real utility.

Speaking at the 2026 Midwest Economic Outlook Summit in Fargo, North Dakota on Thursday, he contrasted the everyday utility of artificial intelligence (AI) tools with cryptocurrencies.

“Crypto has been around for more than a decade, and it’s utterly useless,” he said, while AI “has real long term potential for the U.S. economy.”

After asking the audience who had used AI tools like ChatGPT or Gemini in the past week, Kashkari posed a second question: “raise your hand if you’ve bought or sold something with bitcoin.”

When the discussion turned to payments and stablecoins, Kashkari said he’s unconvinced the technology improves on existing financial rails. “I hear these words and I like, it’s just, it’s like a buzzword salad,” he said. “What can I do with the stablecoin that I can’t do with Venmo today?”

Pressed on stablecoins being used for cheaper and faster cross-border payments, Kashkari argued that proponents quickly concede that those benefits aren’t aimed at U.S. consumers. While he admitted that adoption in emerging countries is rising, the said the tech still faces technical problems.

While stablecoin advocates promise instant transfers, he said, recipients still need to convert into local currency for everyday payments like buying groceries, which can be expensive.

Kashkari’s skepticism stands in stark contrast to the Trump administration, which has increasingly championed bitcoin and U.S. dollar-backed stablecoins as key strategic tools.

Treasury Secretary Scott Bessent argued that regulated stablecoins can extend the greenback’s dominance in global payments and reinforce its status as the world’s reserve currency, strengthening U.S. financial influence. President Trump also signed an executive order in March to create a strategic bitcoin reserve, which Bessent was an advocate for.