The President of the Federal Reserve Bank of Minneapolis Neel Kashkari launched another direct criticism of crypto while defending the independence of the Federal Reserve during remarks in Fargo, North Dakota, today.
Speaking at the Midwest Economic Outlook 2026 conference, Kashkari questioned the importance of digital assets, saying “crypto has been around for over a decade and is completely useless,” according to the report. Bloomberg.
He compared crypto to artificial intelligence tools, which he said show clear, everyday uses for consumers and businesses.
Kashkari also dismissed the promise of stablecoins, saying they offer little improvement to existing payment systems. “I can send any of you $5 through Venmo or PayPal or Zelle,” he said during a question-and-answer session. “So what can this magical stablecoin do?”
While acknowledging claims that stablecoins can make cross-border transfers faster and cheaper, Kashkari argued that recipients still have to convert digital tokens into local currency for everyday purchases, which creates more friction and costs. He said lawyers have yet to present a compelling case for using American consumers.
Aside from digital assets, Kashkari addressed criticism from National Economic Council Director Kevin Hassett regarding the New York Fed’s tax audit. The President of Minneapolis described the speech as “another step in an attempt to compromise the independence of the Fed.”
“Over the past year, we’ve seen many attempts to compromise the Fed’s independence,” he said, referring to the Justice Department’s December subpoena to the Board of Governors regarding construction costs.
The President of Minneapolis emphasized that central bank independence supports effective monetary policy. “Every advanced economy in the world has a private central bank,” he said, arguing that policy decisions serve society better when they are based on data and analysis rather than short-term political considerations.
On the economy, Kashkari noted that inflation has dropped to between 2.5% and 3%, while unemployment has risen from around 3.5% to 4.3%.
He said the Fed is “very close to neutral” after cutting interest rates several times over the past two years.
Kashkari: Crypto is like a ‘Beanie Babies’ bubble
Last November, Kashkari drew similar criticism, comparing the industry to the Beanie Babies bubble of the 1990s and arguing that it still lacked economic utility.
Speaking on CNN, Kashkari said he was more confident in the use of AI, which he saw as bringing real economic value, while crypto failed to show a compelling purpose.
He asked about the daily use of digital assets in the US, noting that the main request he does not help is to pass banking laws such as the rules of knowing your customer and anti-money-laundering – a use he described as “painful” for the Federal Reserve policy maker.
