Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, delivered a forceful critique of cryptocurrencies and stablecoins during his keynote at the 2026 Midwest Economic Outlook Summit, describing digital assets as “utterly useless” compared to artificial intelligence and labeling much of the industry’s messaging on stablecoins as “buzzword salad.” Kashkari’s comments underscore persistent skepticism among some central bankers about the real-world utility of the crypto sector.
Kashkari Contrasts Crypto With AI’s Practical Utility
Speaking on Thursday, Kashkari drew sharp contrasts between crypto and artificial intelligence (AI) — an emerging technology he said has clear, daily applications, whereas crypto has not proven its value to the broader economy even after more than a decade. “AI has not been around very long, and people are using it every day,” he said, adding that crypto has been around for more than a decade and it’s utterly useless in his assessment.
Kashkari said he often asks proponents to explain what a stablecoin can do that existing tools like Venmo, PayPal or Zelle cannot, but said answers tend to revert to technical terminology rather than clear use cases. He characterized such responses as “buzzword salad,” questioning whether stablecoins truly improve on established payment systems.
Stablecoin Critique: What Holds Back Adoption?
Kashkari highlighted his skepticism about stablecoins’ ability to deliver meaningful advantages in everyday financial activity, telling the audience that while these assets may move value quickly across borders, recipients still incur costs to convert them into local currency — undermining the narrative of frictionless payments. He argued that no country is likely to abandon its own monetary policy in favor of an unregulated global stablecoin network.
His critique pointed to what he sees as a failure to demonstrate tangible consumer benefits from crypto and stablecoins after years of hype, contrasting this with the practical adoption curve of AI technologies.
Broader Context and Policy Implications
Kashkari’s remarks come amid ongoing debates about how digital assets should be regulated and the role they might play in mainstream financial infrastructure. His position reflects a cautious central bank perspective that emphasizes financial stability and established payment rails over speculative or nascent digital financial networks.
While industry supporters point to growing infrastructure, institutional participation and evolving regulatory clarity, critics like Kashkari remain unconvinced that crypto’s benefits outweigh risks or meaningfully serve consumers outside of trading and speculation.
Despite his critique, Kashkari acknowledged the importance of AI’s economic impact — asserting that its practical innovations are already embedded in business and consumer activities, a contrast he used to frame his skepticism of crypto.
Market Reaction and Industry Response
Crypto markets responded to the remarks with mixed reactions. Some traders and advocates highlighted the continued growth of on-chain activity and institutional products, while others noted that regulatory skepticism from central bankers can influence sentiment and regulatory scrutiny. Analysts suggest such comments may spur further industry engagement with policy makers to articulate tangible use cases.
