 ▲ United States, U.S. Dollar (USD), Cryptocurrency / AI-generated image |
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis and a leading hawkish figure within the U.S. Federal Reserve, delivered sharp criticism toward virtual assets. He argued that, unlike artificial intelligence (AI), cryptocurrencies have failed to create tangible value and expressed strong skepticism about the utility of stablecoins.
According to Cointelegraph, Kashkari said at the 2026 Midwest Economic Outlook Summit last Thursday that “cryptocurrencies have been around for more than a decade but are essentially useless.” Comparing AI and virtual assets, he noted, “Although AI has not been around very long, people use it every day and it demonstrates real long-term potential for the U.S. economy, whereas cryptocurrencies do not.”
Kashkari also mocked the marketing approach of the stablecoin industry as a “buzzword salad.” He remarked, “I always ask people: What can you do with stablecoins that you can’t do with Venmo, PayPal, or Zelle? The answers I get are always vague, like tokenized deposits.” He suggested that claims of stablecoins being superior to existing payment platforms lack substance.
He was similarly skeptical about the use of stablecoins for overseas remittances. Citing the example of his father-in-law who lives in the Philippines, Kashkari said, “You may be able to receive stablecoins quickly, but to spend them you eventually have to convert them into local currency and pay fees.” He countered that the argument that remittance costs are significantly cheaper is not as accurate as many claim. He also made clear that other countries are unlikely to give up their monetary sovereignty for the sake of stablecoins.
His remarks, reflecting the perspective of regulators, suggest that the path toward mainstream institutional acceptance of virtual assets remains challenging. Kashkari urged investors and industry participants to “ask the most basic questions about cryptocurrencies or stablecoins and not settle for vague answers.” His comments came as major assets such as Bitcoin (BTC) were attempting a rebound, and they are expected to have a notable impact on market sentiment.
The hardline stance of a key Federal Reserve official is likely to serve as an important indicator of the future direction of U.S. legislation and regulation related to virtual assets. In particular, as discussions continue over bills such as the GENIUS Act on stablecoin regulation, Kashkari’s criticism once again highlights the gap between the traditional financial system and the crypto industry.
Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses incurred based on its content. The information should be interpreted solely for informational purposes.