Kashkari: Crypto is Useless, AI is Transforming the Economy

Minneapolis Fed President Neel Kashkari described cryptocurrencies as “completely useless” compared to artificial intelligence (AI). Speaking at the 2026 Midwest Economic Outlook summit held on Thursday, Kashkari noted that despite crypto's existence for over a decade, it has not provided any benefit, while emphasizing that AI is already being used in daily life in a short time and has long-term potential for the US economy.

Neel Kashkari's Crypto and AI Comparison

Kashkari argued that cryptocurrencies have not produced concrete benefits despite their promises. Assets like Bitcoin (BTC detailed analysis) have been in the market since the 2010s, yet they have not transformed traditional financial systems. In contrast, AI is rapidly integrating with tools like ChatGPT and increasing productivity. Kashkari stated that AI has the potential to contribute trillions of dollars to US GDP.

Stablecoin Criticism: Buzzword Salad

Targeting stablecoins, Kashkari described their usage as “buzzword salad,” that is, a pile of jargon. He questioned whether stablecoins can perform the same transactions that can be done with tools like Venmo, PayPal, or Zelle. He implied that the crypto sector hides its real value with technical terms.

Neel Kashkari (left) speaking at the Midwest Economic Outlook summit on Thursday. Source: YouTube

The Reality of Stablecoins in Remittance Payments

Using his father-in-law in the Philippines as an example regarding remittance payments, he argued that although stablecoins are fast, they require fees when converting to local currency and other countries will not abandon their own monetary policies. Like traditional systems, stablecoins also incur additional costs in cross-border transfers.

Basic Questions from Kashkari to the Crypto Sector

He advised asking basic questions about crypto and stablecoins and not accepting jargon answers. He suggested that investors question the real value in tools like BTC futures. These criticisms reflect the Fed's skeptical stance on crypto regulation.