Federal Reserve Bank of Minneapolis President Neel Kashkari criticized cryptocurrency as utterly useless during a speech in Fargo, North Dakota. He questioned the practical value of digital assets and stablecoins compared to existing payment systems. Kashkari also defended the Federal Reserve's independence amid political pressures.
Federal Reserve Bank of Minneapolis President Neel Kashkari delivered pointed criticism of cryptocurrency on February 19, 2026, while speaking at the Midwest Economic Outlook Summit in Fargo, North Dakota. According to Bloomberg, Kashkari stated that crypto, which has existed for more than a decade, is 'utterly useless.' He contrasted it with artificial intelligence, which he said offers clear utility for consumers and businesses.
Kashkari dismissed the advantages of stablecoins, arguing they provide little improvement over current options. During a question-and-answer session, he remarked, 'I can send any one of you $5 with Venmo or PayPal or Zelle. So what is it that this magical stablecoin can do?' He acknowledged potential benefits for cross-border transfers but noted that recipients must convert stablecoins to local currency, adding friction and costs. Kashkari said advocates have not presented a compelling use case for U.S. consumers.
This is not Kashkari's first critique. Last November, he compared the crypto sector to the 1990s Beanie Babies bubble, arguing it lacks meaningful economic use. He expressed greater confidence in AI's ability to deliver real value, while describing crypto's main application in the U.S. as bypassing banking regulations like know-your-customer and anti-money-laundering rules—a use he called 'lousy' for a policymaker.
Beyond crypto, Kashkari addressed threats to the Fed's independence. He responded to criticism from National Economic Council Director Kevin Hassett about a New York Fed study on tariffs, calling it 'another step to try to compromise the Fed’s independence.' He referenced a December subpoena from the Department of Justice to the Board of Governors over building expenses. Kashkari emphasized that 'every advanced economy in the world has an independent central bank,' arguing that data-driven policy serves the public best.
On the economy, Kashkari noted inflation has eased to between 2.5% and 3%, while unemployment has risen from 3.5% to 4.3%. He said the Fed is 'pretty close to neutral' after multiple rate cuts over the past two years.
