As the White House actively embraces cryptocurrencies, the Federal Reserve (Fed) has issued a starkly different opposition. On Thursday, Neel Kashkari, President of the Minneapolis Federal Reserve Bank, launched a full-scale critique, stating that cryptocurrencies, including Bitcoin and stablecoins, have yet to prove any “real practical use.”
At the “2026 Midwestern Economic Outlook Summit” held in Fargo, North Dakota, Kashkari compared the everyday utility of artificial intelligence (AI) tools to that of cryptocurrencies.
“Cryptocurrencies have been around for over ten years, yet they remain useless,” he said. In contrast, he believes AI technology “has genuine long-term development potential for the U.S. economy.”
To support his point, he asked the audience: how many people have used AI tools like ChatGPT or Gemini in the past week? Then he shifted the question: “Who has ever used Bitcoin to buy or sell something? Raise your hand.”
When discussing payments and stablecoins, Kashkari’s criticism grew even more intense. He pointed out that he sees no concrete upgrades that this technology can bring to the existing financial system.
Listening to these technical terms, it feels like I’m eating a plate of “trendy slang stew,” all fancy jargon.
Today, what can I do with stablecoins that I can’t already do with Venmo (a mainstream mobile payment app in the U.S.)?
When the topic shifted to the claim that “stablecoins make cross-border payments cheaper and faster,” Kashkari remained unmoved. He countered by saying that crypto supporters often admit that these benefits are not primarily aimed at American consumers.
He openly acknowledged that stablecoins have shown growth in some emerging markets, but overall, the technology still faces practical bottlenecks. Even though supporters claim stablecoins can “settle instantly,” recipients still need to convert to local fiat currency for everyday transactions, which is not only cumbersome but also incurs costs.
Kashkari’s skeptical remarks stand in stark contrast to the current Trump administration’s strong stance on viewing Bitcoin and stablecoins as “national strategic tools.”
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