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
Gold crashes 21%, hitting a 106-year record. After Bitcoin stays steady at $70,000, what is its future trend?
In March 2026, gold experienced its largest decline in nearly a century, dropping from $5,193 to $4,098, reflecting a reassessment of its safe-haven properties by investors. Meanwhile, Bitcoin performed relatively stably, becoming a new store of value for some investors. The correlation between gold and Bitcoin has fallen to -0.31, indicating diverging trends. Market opinions on gold's outlook are divided, and future movements will be influenced by geopolitical and monetary policy developments.
GateNews16m ago
The market has increased expectations of a Federal Reserve rate hike, with the probability of a rate increase this year exceeding 50%.
Gate News reports that on March 26, the market has increased expectations of a Federal Reserve rate hike, and it is now believed that the probability of the Fed raising interest rates this year has exceeded 50%.
GateNews29m ago
Is there hidden risk behind Bitcoin holding steady at $70,000? Two major indicators weaken, reducing upward momentum.
Amid increasing geopolitical conflicts and macroeconomic uncertainties, Bitcoin remains steady at $70,000, demonstrating resilience. However, the decline in CEX premiums and slowing ETF capital flows indicate that institutional investors are becoming more cautious, and the market may enter a period of consolidation.
GateNews2h ago
U.S. Treasury Secretary Bessent Proposes Reforming Federal Reserve Oversight Based on Bank of England Model
U.S. Treasury Secretary Bessent proposed drawing lessons from the Bank of England model to strengthen oversight of the Federal Reserve, which could alter the relationship between the two. He praised the UK's 1997 reform that allowed the central bank to independently set monetary policy, while criticizing the Federal Reserve's quantitative easing policies. Bessent believes that this move would help enhance the Federal Reserve's accountability while maintaining its independence.
GateNews2h ago
Bitcoin ETF Ends Seven-Day Rally, Bitcoin Price Pressure Resurfaces
US Bitcoin spot ETFs have shifted to outflows after a period of continuous inflows, causing Bitcoin's price to decline and briefly break below the $70,000 mark. Although there were modest net inflows earlier this week, market sentiment has turned conservative due to macroeconomic uncertainties, indicating reduced institutional risk appetite. The $70,000 level has become a near-term battleground between bulls and bears, reflecting insufficient market confidence.
区块客3h ago
China's former officials have approved the "White House review" to open 401(k) retirement funds for cryptocurrency purchases—Is Bitcoin ready to be driven up by 12 trillion dollars in capital?
The U.S. Department of Labor's proposal has completed White House review and will allow cryptocurrency and private equity to enter 401(k) retirement accounts, with formal rules expected to be announced within weeks. If implemented, the $12 trillion in retirement funds will be opened to alternative assets like Bitcoin for the first time, though the risks of highly volatile assets have sparked some controversy.
動區BlockTempo4h ago
