Minneapolis Federal Reserve President Neel Kashkari used the 2026 Midwest Economic Outlook Summit to deliver one of his sharpest attacks on the crypto sector, calling digital assets “utterly useless” and accusing the industry of relying on marketing “word salad” instead of practical utility.
During a fireside chat, Kashkari contrasted crypto with artificial intelligence. His argument was blunt: AI tools have moved into everyday economic activity at speed, while crypto, after more than a decade of development, still has not shown U.S. consumers a compelling reason to use it. That comparison framed the rest of his remarks.
The cross-border payments pitch meets the grocery test
Kashkari focused heavily on the claim that crypto works best for cross-border payments. Using the example of sending money to family in the Philippines, he said the “instant” transfer narrative breaks down at the moment the recipient needs to spend the funds in ordinary life. The transfer may happen on-chain, but the payment journey does not end there.
His question to the audience was simple: How does the recipient buy groceries with it? In his view, the recipient still has to convert crypto into local currency, and that conversion remains costly. Kashkari said the argument from advocates often depends on an unrealistic premise — that friction disappears if the whole world uses the same platform. He added that countries are not going to give up independent monetary policy for a unified crypto system.
Stablecoin claims face comparison with Venmo and Zelle
Kashkari extended the criticism to stablecoins. He said many features presented as innovation are already handled efficiently by domestic payment tools such as Venmo and Zelle. On that basis, he argued that stablecoins have not demonstrated a superior use case in existing U.S. payment flows.
He also urged both the public and policymakers to press for clear explanations instead of accepting vague industry language. Kashkari said people should ask basic questions and refuse empty answers; in his telling, once promoters are pushed to explain exactly how these systems work, the substance often disappears.
Central bank skepticism collides with market expansion
The remarks show a widening divide in 2026 between central bank skepticism and commercial growth in the crypto market. Only hours earlier, CME Group announced plans to move toward 24/7 crypto derivatives trading in response to institutional demand. That timing sharpened the contrast: parts of the financial industry are building more crypto infrastructure, while Fed officials continue to challenge whether the assets solve real consumer problems at all.
Kashkari did not focus on token prices or technical architecture. He reduced the debate to a basic question of usefulness in daily life — whether a financial product actually makes sending money, paying for essentials, and operating inside the real economy easier. His answer was clear, and deeply dismissive.