Federal Reserve Bank of Minneapolis President Neel Kashkari delivered another scathing critique of crypto while defending the Federal Reserve’s independence during remarks in Fargo, North Dakota, today.
Speaking at the Midwest Economic Outlook 2026 Summit, Kashkari questioned the practical value of digital assets, stating that “crypto has been around for over a decade and it’s completely useless,” according to Bloomberg.
He contrasted crypto with artificial intelligence tools, which he said have shown clear, everyday utility for consumers and businesses.
Kashkari also dismissed the promise of stablecoins, claiming they offer little improvement over existing payment systems. “I can send any of you $5 with Venmo or PayPal or Zelle,” he said during a question-and-answer session. “So what can this magical stablecoin do?”
While acknowledging claims that stablecoins could make cross-border transfers faster and cheaper, Kashkari argued that recipients still need to convert digital tokens into local currency for daily purchases, creating additional friction and costs. He said advocates have yet to present a compelling use case to American consumers.
In addition to digital assets, Kashkari addressed criticism from National Economic Council director Kevin Hassett regarding a New York Fed investigation into 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 several attempts to try to compromise the Fed’s independence,” he said, referring to a December subpoena from the Justice Department to the Governing Council related to construction spending.
The Minneapolis president emphasized that the central bank’s independence supports an 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 they are based on data and analysis rather than short-term policy considerations.
On the economy, Kashkari noted that inflation has fallen to between 2.5% and 3%, while unemployment has risen from around 3.5% to 4.3%.
He said the Fed is “pretty close to neutral” after cutting interest rates several times over the past two years.
Kashkari: Crypto is like the ‘Beanie Babies’ bubble
Last November, Kashkari had a similar critique, comparing the sector to the Beanie Babies bubble of the 1990s and arguing that it still lacks meaningful economic use.
Speaking on CNN, Kashkari said he was more confident about the utility of AI, which he sees as delivering real economic value, whereas crypto does not show a compelling purpose.
He questioned the day-to-day use of digital assets in the US, noting that the main application he hears is to circumvent banking know-your-customer and anti-money-laundering rules — a use he described as “miserable” for a Federal Reserve policymaker.