Last updated on March 6th, 2026 at 04:21 pm
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, has sharply criticized the cryptocurrency industry, describing crypto as “utterly useless” and questioning whether stablecoins offer any meaningful advantages over existing payment systems.
Speaking at the 2026 Midwest Economic Outlook summit on Thursday, Kashkari contrasted crypto with artificial intelligence, arguing that the difference in real-world adoption is clear.
“Crypto has been around for more than a decade, and it’s utterly useless,”
he said. By comparison, he noted, AI technologies have rapidly integrated into daily life and business operations.
“AI has not been around very long, and people are using it every day. This is demonstrating to me that this thing is real and it has real long-term potential for the US economy as opposed to crypto.”
Stablecoins compared to Venmo and PayPal
Kashkari also took aim at stablecoins, saying the industry’s explanations of their benefits often amount to “buzzword salad.”
He questioned what practical function stablecoins serve that existing platforms such as Venmo, PayPal or Zelle cannot already provide.
“What can I do with a stablecoin that I can’t do with Venmo today?”
he asked, adding that sending small payments domestically is already fast and simple through current financial apps.
The Fed official was particularly skeptical about claims that stablecoins significantly improve cross-border remittances. Using the example of his father-in-law in the Philippines, Kashkari said that even if stablecoins are transferred quickly, recipients must still convert them into local currency to spend them, often incurring fees in the process.
Frictions remain across monetary systems
Kashkari argued that many of the touted efficiencies would only materialize if countries abandoned their own currencies and monetary policies in favour of a single global payment system, something he views as unrealistic.
“If everybody in the world uses the same currency or the same payment platform, all these frictions go away,”
he said.
“But all these other countries are not going to abandon their own monetary policy.”
He concluded by urging audiences to ask basic, practical questions about crypto and stablecoins rather than accepting technical jargon at face value, reinforcing his long-standing skepticism toward the sector’s economic value proposition.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
