Minneapolis Fed President Neel Kashkari today delivered sharp new criticism of cryptocurrencies while defending the independence of the Federal Reserve in a speech in Fargo, North Dakota.
Speaking at the 2026 Midwest Economic Outlook Summit, Kashkari reportedly questioned the practical value of digital assets, saying, “Cryptocurrency has been around for over 10 years, but it’s completely useless.” Bloomberg.
He contrasted cryptocurrencies with artificial intelligence tools, saying that artificial intelligence tools have demonstrated clear everyday utility for consumers and businesses.
Kashkari also dismissed the promise of stablecoins, arguing that they offer little improvement over existing payment systems. “You can send $5 to anyone with Venmo, PayPal, or Zelle,” he said during a Q&A. “So what can this magical stablecoin do?”
Kashkari acknowledged the argument that stablecoins could make cross-border transfers faster and cheaper, but argued that recipients would still need to convert digital tokens into local currency for everyday purchases, creating additional friction and costs. He said proponents have yet to present a convincing use case to U.S. consumers.
Beyond digital assets, Kashkari also addressed National Economic Council Director Kevin Hassett’s criticism of the New York Fed’s investigation into tariffs. Governor Minneapolis characterized the remarks as “another step in an effort to undermine the Fed’s independence.”
“Over the past year, we have seen multiple attempts to undermine the Fed’s independence,” he said, noting that the Justice Department issued a subpoena to the board in December related to construction costs.
President Minneapolis emphasized that central bank independence supports effective monetary policy. “Every developed country in the world has an independent central bank,” he said, arguing that policy decisions best serve the public when they are based on data and analysis rather than short-term political considerations.
Regarding the economy, Kashkari said the inflation rate has fallen to 2.5-3%, while the unemployment rate has increased from about 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: Cryptocurrency is like a ‘Beanie Baby’ bubble
Last November, Kashkari made similar criticisms, comparing the sector to the Beanie Baby bubble of the 1990s and arguing that it still lacks meaningful economic exploitation.
Kashkari said on CNN that he is more confident in the usefulness of AI and believes it can deliver real economic value, whereas cryptocurrencies have failed to demonstrate a compelling purpose.
He questioned the everyday use of digital assets in the U.S., saying the main use he hears about is to circumvent banking regulations such as know-your-customer and anti-money laundering rules, which he said is a “terrible” use for a Federal Reserve policymaker.
