Neel Kashkari Slams Crypto as “Utterly Useless”

TheNewsCryptoPublished on 2026-02-20Last updated on 2026-02-20

Abstract

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, criticized cryptocurrencies as "utterly useless," arguing they lack functional utility and rely on misleading marketing. Speaking at the 2026 Midwest Economic Outlook Summit, he contrasted crypto's minimal real-world economic impact with the tangible benefits of AI. He specifically dismissed claims about crypto's efficiency in cross-border payments, using a personal example of sending money to the Philippines. Kashkari emphasized that converting crypto to local currency remains costly and impractical for everyday use like buying groceries. He urged policymakers to reject vague industry explanations, describing them as "buzzword salad," and warned that current systems already handle transactions efficiently. His comments highlight growing tension between central bank skepticism and expanding commercial crypto adoption.

The President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, criticised the cryptocurrency industry on February 19, describing digital assets as utterly useless and defined by word salad marketing instead of functional utility.

Kashkari attended the 2026 Midwest Economic Outlook Summit, in which he questioned the fundamental value proposition of cryptocurrencies and stablecoins. In the fireside chat, he compared the tangible economic effect of AI with the decade-long history of crypto, which he claims has failed to amalgamate into the real economy.

Kashkari was mainly dubious of the claim that crypto excels at cross-border payments. He also used a personal example for describing the issues of sending money to family in the Philippines.

While proponents claim crypto offers quick transfers, Kashkari claimed the logic falls apart at the point of sale. The president further questioned the audience: how does someone buy groceries with it?

They still have to change it to the local currency, and that is still expensive. What advocates are actually stating is that if everyone in the world used the same platform, friction would fade, but countries are not going to surrender their own monetary policies.

The Dissatisfaction from the Industry

The Fed official requested the public and policymakers to stop settling for vague explanations. He explained most of the rhetoric of the industry as a buzzword salad, mentioning that most revolutions provided by stablecoins are so far handled efficiently by current domestic tools such as Venmo or Zelle.

He also warned, “Ask the most fundamental questions and do not settle for nonsense. Whenever I make people actually explain how this thing really works, there is just nothing there.”

The remarks underscore an increasing divide in 2026 between the scepticism of the central bank and the broadening of the commercial sector, coming just hours following the announcement of the CME Group to move toward 24/7 crypto derivatives trading to meet institutional demand.

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