Fed Official Slams Crypto and Stablecoins as 'Utterly Useless'

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, questions the value of digital assets

Feb. 25, 2026 at 8:19pm

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Neel Kashkari, the President of the Federal Reserve Bank of Minneapolis, has criticized cryptocurrencies and stablecoins as "utterly useless" during a Q&A session at the Midwest Economic Outlook Summit. Kashkari challenged the audience to raise their hands if they had used popular AI tools like ChatGPT, but no one raised their hand when he asked who had bought or sold something with Bitcoin, highlighting his view that cryptocurrencies lack real-world utility.

Why it matters

Kashkari's comments reflect the growing skepticism among policymakers and regulators towards the cryptocurrency industry, which has faced increased scrutiny and skepticism in recent years. His remarks underscore the challenges the crypto sector faces in demonstrating its value proposition and gaining mainstream adoption.

The details

During the Q&A session, Kashkari questioned the usefulness of stablecoins, stating that they do not offer any additional functionality beyond what existing payment platforms like Venmo and PayPal already provide. He also criticized crypto proponents, saying that when he asks them about the usefulness of stablecoins, he only hears "a buzzword salad answer." Kashkari has been a longtime critic of cryptocurrencies, previously comparing them to Beanie Babies and questioning their fundamental value.

  • Kashkari made these comments during a Q&A session at the Midwest Economic Outlook Summit on February 19, 2026.

The players

Neel Kashkari

The President of the Federal Reserve Bank of Minneapolis, who has been a vocal critic of cryptocurrencies and stablecoins.

Jim Ryan III

The CEO of Old National Bancorp (NASDAQ:ONB), who asked Kashkari about AI and cryptocurrencies during the Q&A session.

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What they’re saying

“Crypto's been around for more than a decade and it's utterly useless.”

— Neel Kashkari, President, Federal Reserve Bank of Minneapolis (Midwest Economic Outlook Summit)

“When it comes to anything about crypto or stablecoins, ask the most basic questions and don't settle for word salad nonsense answers. Make them really explain how this thing actually works. And whenever I do that, there's just nothing there.”

— Neel Kashkari, President, Federal Reserve Bank of Minneapolis (Midwest Economic Outlook Summit)

The takeaway

Kashkari's remarks highlight the ongoing skepticism and scrutiny facing the cryptocurrency industry from policymakers and regulators, who continue to question the real-world utility and value proposition of digital assets. As the debate around the role of cryptocurrencies and stablecoins in the financial system continues, the industry will likely face increasing pressure to demonstrate its practical applications and benefits to consumers and the broader economy.