Duing recent panel discussion, Minneapolis Federal Reserve President Neel Kashkari stated that crypto is “useless.”
Kashkari is concerned about the structural impact stablecoins could have on traditional finance.
“I’m very cautious about stablecoins and other things because I think it will put pressure on the economy because banks will lend less,” he stated.
HOT Stories
Fed President: Crypto Is Useless
Ripple CEO: XRP Is ‘Best Performing’ Major Crypto
Cross-border illusion
When pressed, advocates often concede that the technology fails to solve domestic financial problems, according to Kashkari
“When I push people on how is this useful, they very quickly have to admit it’s not useful in America,” he said. “It’s useful to send money to another market or for customers in another country.”
To illustrate his skepticism, Kashkari used a personal example regarding his family’s ties abroad.
“My wife was born in the Philippines. She’s a U.S. citizen, but her family’s in the Philippines. So, if I want to send my father-in-law money to buy groceries, they say, ‘Oh my gosh, it’s so costly to do it today with this gee-whiz crypto stuff, you could do it instantly.’”
However, Kashkari pointed out the perceived flaw in this transaction: the friction of converting digital assets back into usable fiat currency in the destination country.
When industry proponents counter that the end goal is for local merchants to accept the digital assets directly, Kashkari argued that this scenario ignores the reality of global economics.
“Then they say, ‘No, no, no. Well, if the grocer also uses it, then he can buy.’ So what they’re really saying is if everybody in the world uses the same currency or the same payment platform, all these frictions go away,” he explained. “But all these other countries are not going to abandon their own monetary policy.”
He has regulators, policymakers, and the public to demand concrete answers from crypto advocates rather than accepting technological jargon.
“So you know, when it comes to anything about crypto or stablecoins, ask the most basic questions and don’t settle for word salad nonsense answers,” he warned. “Make them really explain how this thing actually works. And whenever I do that, there’s just nothing there.”
Kashkari’s vocal skepticism is definitely not new. In 2018, he publicly labeled the cryptocurrency market a “farce.”
Just last month, as reported by U.Today, he claimed that crypto had no use for everyday consumers
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Crypto funds see first outflow in 5 weeks amid inflation fears, Iran tensions
Crypto investment products saw their first weekly outflows in five weeks last week, with $414 million exiting the market as investors grew cautious over rising inflation risks and escalating tensions in the Middle East.
The pullback came as expectations for the June
Cointelegraph38m ago
CoinShares: Last week, net outflows from digital asset investment products totaled $414 million, ending four consecutive weeks of net inflows.
According to CoinShares data, as of March 30, digital asset investment products experienced a net outflow for the first time, with an outflow size of $414 million, bringing the total managed size down to $129 billion. The main reasons are the tense situation in Iran and expectations of interest rate hikes, with outflows primarily concentrated in the United States. Both Ethereum and Bitcoin saw significant net outflows, while XRP recorded a net inflow.
GateNews2h ago
Why did the cryptocurrency market rise today? Bitcoin and Ethereum lead the increase, boosted by changes in the Middle East situation.
The global cryptocurrency market rebounded on March 30, 2026, with a market capitalization of approximately $2.4 trillion, as both Bitcoin and Ethereum saw gains, and market sentiment improved due to easing tensions in the Middle East. Despite the recovery in the spot market, the derivatives market remains volatile, and investors should pay attention to the potential pressures from high energy prices and interest rates.
GateNews3h ago
Crypto Markets Brace for 4 Key Events This Week, Beginning With Powell on Monday
Following a quiet weekend with little to no actual price moves, bitcoin and the altcoins could be primed for more fluctuations as the business week unfolds due to several big events in the US.
Perhaps the two that are likely to attract the most attention will take place on Monday and
CryptoPotato3h ago
Powell's speech is coming! This week, six major macroeconomic data releases are scheduled, and Bitcoin may face a critical turning point.
Bitcoin is expected to maintain around $67,400 by the end of March 2026, influenced by upcoming U.S. economic data (including Powell's speech, employment, and consumer indicators), which will determine market direction. Expectations of interest rate cuts and resilient economic data will directly impact Bitcoin's movement, with prices likely fluctuating within a key range in the short term.
GateNews3h ago
Powell's speech at Harvard tonight, be cautious of the pitfalls!
The market is calmly observing the interest rate hike:
The war in the Middle East makes rate cuts seem a long way off.
Federal Reserve Chairman Powell will reiterate his stance on pausing interest rate cuts at Harvard University, emphasizing that he is not in a hurry to adjust rates given the uncertainty in the Middle East situation. He is facing pressure from Trump and a criminal investigation, and the market will closely monitor the impact of his remarks on digital assets and the overall economy.
動區BlockTempo3h ago
