Federal Reserve Bank of Minneapolis President Neel Kashkari delivered another pointed criticism of crypto while defending the Federal Reserve’s independence during remarks in Fargo, North Dakota, today.
Speaking at the 2026 Midwest Economic Outlook Summit, Kashkari questioned the practical value of digital assets, stating that “crypto has been around for more than a decade and it’s utterly useless,” according to Bloomberg.
He contrasted crypto with artificial intelligence tools, which he said have demonstrated clear, everyday utility for consumers and businesses.
Kashkari also dismissed the promise of stablecoins, arguing they offer little improvement over existing payment systems. “I can send any one of you $5 with Venmo or PayPal or Zelle,” he said during a question-and-answer session. “So what is it that this magical stablecoin can do?”
While acknowledging claims that stablecoins could make cross-border transfers faster and cheaper, Kashkari argued that recipients must still convert digital tokens into local currency for everyday purchases, creating additional friction and cost. He said advocates have yet to present a compelling use case for U.S. consumers.
Beyond digital assets, Kashkari addressed criticism from National Economic Council Director Kevin Hassett regarding a New York Fed study on tariffs. The Minneapolis President characterized the 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 said, referencing a December subpoena from the Department of Justice to the Board of Governors related to building expenses.
The Minneapolis President emphasized that central bank independence underpins effective monetary policy. “Every advanced economy in the world has an independent central bank,” he said, arguing that policy decisions serve the public best when based on data and analysis rather than short-term political considerations.
On the economy, Kashkari noted inflation has eased to between 2.5% and 3%, while unemployment has risen from roughly 3.5% to 4.3%.
He said the Fed is “pretty close to neutral” after cutting interest rates multiple times over the past two years.
Kashkari: Crypto is like the ‘Beanie Babies’ bubble
Last November, Kashkari had a similar criticism, comparing the sector to the 1990s Beanie Babies bubble and arguing it still lacks meaningful economic use.
Speaking on CNN, Kashkari said he was more confident in the utility of AI, which he sees as delivering real economic value, whereas crypto fails to demonstrate a compelling purpose.
He questioned the everyday use of digital assets in the U.S., noting that the main application he hears is to bypass banking regulations like know-your-customer and anti-money-laundering rules — a use he described as “lousy” for a Federal Reserve policymaker.
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