Minneapolis Federal Reserve President Neel Kashkari delivered a blistering critique of the cryptocurrency industry on Thursday, dismissing digital assets as “utterly useless” and characterized by “word salad” marketing rather than functional utility.
Summary
- Kashkari argued that after over a decade, crypto has failed to provide a compelling use case for U.S. consumers, unlike AI tools which have seen rapid, practical adoption.
- He dismissed the “instant” cross-border payment narrative, noting that recipients must still pay high costs to convert crypto into local currency for daily essentials.
- The Fed official asserted that existing domestic tools like Venmo and Zelle already outperform stablecoins, and warned that nations will not abandon independent monetary policies for a unified crypto platform.
Speaking at the 2026 Midwest Economic Outlook Summit, Kashkari challenged the fundamental value proposition of cryptocurrencies and stablecoins.
During a fireside chat, he contrasted the tangible economic impact of Artificial Intelligence with the decade-long history of crypto, which he argues has failed to integrate into the real economy.
Kashkari’s crypto “grocery store” test
Kashkari was particularly skeptical of the claim that crypto excels at cross-border payments. Using a personal example, he described the hurdles of sending money to family in the Philippines. While proponents claim crypto offers “instant” transfers, Kashkari argued the logic falls apart at the point of sale.
“How does [a recipient] buy groceries with it?” Kashkari asked the audience.
“They still have to convert it to the local currency, and that is still expensive. What advocates are really saying is that if everyone in the world used the same platform, friction would disappear, but nations are not going to abandon their own monetary policies.”
Demanding clarity over “buzzwords”
The Fed official urged the public and policymakers to stop settling for vague explanations. He described much of the industry’s rhetoric as a “buzzword salad,” noting that most “innovations” offered by stablecoins are already handled efficiently by existing domestic tools like Venmo or Zelle.
“Ask the most basic questions and don’t settle for nonsense,” Kashkari warned. “Whenever I make people really explain how this thing actually works, there’s just nothing there.”
The remarks highlight a growing divide in 2026 between the central bank’s skepticism and the commercial sector’s expansion, coming just hours after the CME Group announced plans to move toward 24/7 crypto derivatives trading to meet institutional demand.
