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
Bank of Canada issues its first tokenized bond! "Issuance, Bidding, and Settlement" all managed on a single ledger
The Bank of Canada completed the "Project Samara" trial, successfully issuing 100 million CAD in tokenized government bonds, becoming the first case of bonds using distributed ledger technology. Participating institutions include multiple banks, aiming to improve financial market efficiency. The trial demonstrated that blockchain can shorten settlement times but requires overcoming regulatory challenges and exploring integration with existing systems. Financial institutions worldwide are increasingly concerned about tokenized assets, and Canada is also establishing a corresponding regulatory framework.
区块客35m ago
CME Data: 99.3% probability that the Federal Reserve will keep interest rates unchanged in March
Gate News Report, March 11 — Before the release of the CPI (Consumer Price Index), according to CME's "Federal Reserve Watch" data, the probability of the Federal Reserve cutting interest rates by 25 basis points by March is 0.7%, and the probability of holding rates steady is 99.3%. The probability of the Federal Reserve maintaining rates unchanged until April is 89.1%, with a 10.9% chance of a cumulative 25 basis point cut, and a 0.1% chance of a cumulative 50 basis point cut. By June, the probability of a cumulative 25 basis point rate cut is 33.1%.
GateNews45m ago
The European Central Bank releases the Appia roadmap, with the core component Pontes expected to go live in Q3 2026.
The European Central Bank released the Appia strategic roadmap on March 11, aiming to build a European tokenized financial market anchored by central bank currency. The core component, Pontes, is scheduled to go live in 2026, facilitating interconnection with TARGET payment services. Public consultation runs until April 22, and the digital euro pilot is expected to launch in 2027.
GateNews1h ago
Bank of England Deputy Governor Broadbent: Will examine whether the 60:40 reserve ratio for stablecoins is too conservative
Gate News Report, March 11 — Bank of England Deputy Governor Briden stated that they will review whether the 60:40 reserve ratio for stablecoins is too conservative.
GateNews2h ago
BOJ to Raise Rates, US Fed Uncertain; What's for Crypto Prices?
The Bank of Japan is expected to raise interest rates to 1% by June 2026 amid global economic concerns and the Middle East conflict. Meanwhile, the US Federal Reserve's response remains uncertain, and crypto prices face volatility as liquidity pressures mount.
TheNewsCrypto2h ago
Nomura Securities adjusts UK Central Bank's interest rate cut forecast: 25 basis points cut in April and July each
Gate News Report, March 11, Nomura Securities stated that they expect the Bank of England to cut interest rates by 25 basis points in April and July. Previously, Nomura Securities forecasted that the Bank of England would cut rates in March and June.
GateNews3h ago
