Fed’s Neel Kashkari Criticizes Crypto and Stablecoins, Highlights AI’s Economic Potential

Neel Kashkari, president of the Fed Bank of Minneapolis delivered sharp criticism of cryptocurrencies and stablecoins during remarks at the 2026 Midwest Economic Outlook summit, arguing that digital assets have yet to demonstrate meaningful real world value.

Kashkari contrasted crypto’s decade long presence with the rapid adoption of artificial intelligence stating that AI tools are already being used daily across industries and show tangible economic promise. By comparison, he described crypto as lacking practical utility despite years of development and investment.

Stablecoin Debate and Payments Comparison

Kashkari also challenged claim that stablecoins significantly improve payments infrastructure. He questioned what stablecoins can accomplish that existing platforms such as Venmo, PayPal and Zelle cannot already deliver in terms of speed and convenience.

Addressing cross border payments, he noted that recipients often face conversion costs when exchanging stablecoins into local currencies, limiting their cost advantage. Kashkari argued that unless countries abandon independent monetary policies in favor of a shared payment framework, such frictions will persist.

His comments come as U.S. regulators continue to debate the future oversight of digital assets and stablecoin frameworks.

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