Neel Kashkari’s Critique of Cryptocurrency
During the 2026 Midwest Economic Outlook Summit, Neel Kashkari, the President of the Minneapolis Federal Reserve, delivered a stern attack on the cryptocurrency sector, labeling digital currencies as “completely worthless” and criticizing their marketing as filled with jargon rather than real-world usefulness.
Cryptocurrencies vs. Artificial Intelligence
Kashkari, speaking in a fireside chat, questioned the basic advantages of cryptocurrencies and stablecoins, especially when compared to the tangible benefits seen from advancements in Artificial Intelligence. He argued that, unlike the decade-long existence of cryptocurrencies, which he claims have not effectively bridged to the real economy, AI is demonstrating immediate economic utility.
Challenges of Cross-Border Transactions
Kashkari’s skepticism extended particularly to the notion that cryptocurrencies facilitate efficient cross-border transactions. Sharing a personal anecdote about transferring funds to his relatives in the Philippines, he pointed out the complications involved. Despite claims of rapid transactions, he insisted that upon reaching their destination, recipients still face the need to convert crypto into local currency, a process he deems costly and impractical.
“How does anyone purchase groceries with it?”
His contention is that proponents overly simplify the matter, suggesting global adoption of a uniform platform would eliminate hurdles, while ignoring that individual countries are unlikely to surrender their monetary systems.
Call for Clarity and Substance
Kashkari urged both the public and lawmakers to demand clarity and substance from the cryptocurrency space, which he feels often resorts to vague buzzwords. He stated that many functionalities boasted by stablecoins are already adeptly served by existing financial tools, such as Venmo and Zelle.
“Inquire about the fundamentals and don’t accept vague responses,”
he cautioned, noting that deeper questioning frequently reveals a lack of substance behind the claims.
Conclusion
His comments reflect an escalating tension in 2026, contrasting the Fed’s cautious stance with the commercial sector’s push towards cryptocurrency, exemplified by the recent announcement from CME Group regarding its plans to implement 24/7 trading for crypto derivatives to satisfy institutional interest.
