Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, offered a blunt take on digital assets, arguing that cryptocurrencies, including bitcoin 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 daily utility of artificial intelligence (AI) tools with cryptocurrencies.
“Crypto has been around for more than a decade and it’s completely useless,” he said, while AI “has real long-term potential for the US economy.”
After asking the audience who had used AI tools like ChatGPT or Gemini in the past week, Kashkari asked another question: “raise your hand if you’ve bought or sold anything with bitcoin.”
When the discussion turned to payments and stablecoins, Kashkari said he is not convinced that the technology improves on existing financial rails. “I hear these words and I’m like, it’s just, it’s like a buzzword salad,” he said. “What can I do with stablecoin that I can’t do with Venmo today?”
Pressed that stablecoins are being used for cheaper and faster cross-border payments, Kashkari argued that proponents are quick to admit that these benefits are not aimed at US consumers. While he admitted that adoption in emerging countries is increasing, he said the technology still faces technical issues.
While stablecoin advocates promise instant transfers, he said, recipients still need to convert to 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 US dollar-backed stablecoins as key strategic tools.
Treasury Secretary Scott Bessent argued that regulated stablecoins can extend the dollar’s dominance in global payments and strengthen its status as the world’s reserve currency, strengthening US financial influence. President Trump also signed an executive order in March to create a strategic bitcoin reserve, which Bessent championed.
