Fed's Kashkari: Crypto "Utterly Useless"

"Speaking at the 2026 Midwest Economic Outlook Summit, Kashkari questioned the practical value of digital assets, stating that "crypto has been around for more than a decade and it's utterly useless," according to Bloomberg. He contrasted crypto with artificial intelligence tools, which he said have demonstrated clear, everyday utility for consumers and businesses. Kashkari also dismissed the promise of stablecoins, arguing they offer little improvement over existing payment systems."

""I can send any one of you $5 with Venmo or PayPal or Zelle," he said during a question-and-answer session. "So what is it that this magical stablecoin can do?" While acknowledging claims that stablecoins could make cross-border transfers faster and cheaper, Kashkari argued that recipients must still convert digital tokens into local currency for everyday purchases, creating additional friction and cost. He said advocates have yet to present a compelling use case for U.S. consumers."

Crypto has been around for more than a decade and remains without demonstrated practical utility for consumers or businesses. Stablecoins offer little improvement over existing payment systems, since small peer-to-peer payments can be sent with Venmo, PayPal, or Zelle. Claims that stablecoins will make cross-border transfers faster and cheaper overlook conversion into local currency, which adds friction and cost for recipients. Attempts to challenge central bank independence have occurred, including public criticism of Fed-related studies and legal inquiries. Central bank independence underpins effective monetary policy, and policy decisions work best when based on data and analysis.

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