Kashkari contrasts AI’s adoption with crypto’s track record

Minneapolis Federal Reserve President Neel Kashkari delivered some of his sharpest remarks yet on digital assets, arguing that crypto has failed to prove real-world utility after more than a decade on the market.

Speaking at the 2026 Midwest Economic Outlook summit on Thursday, Kashkari said crypto is “utterly useless” when compared with artificial intelligence, which he described as already embedded in everyday workflows and showing clearer economic potential.

Related reporting: Stablecoins Move Into Mainstream Finance as Survey Shows Rising Use for Salaries and Daily Payments

His comments land as US policymakers debate how much room stablecoins should have in payments and settlement, and as crypto firms push the narrative that tokenized dollars can reduce costs and improve speed in global transfers.

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

Stablecoins don’t beat Venmo, he says

Kashkari also took aim at stablecoins, questioning the industry’s core value proposition for consumers in the United States.

“I always ask people: What can I do with the stablecoin that I can't do with Venmo today?” he said, adding that responses often amount to “a buzzword salad,” citing phrases such as “tokenized deposits.”

The critique reflects a broader skepticism among some central bankers: even if stablecoins move quickly on-chain, they still rely on off-ramps, banking rails, and compliance checks to function in the real economy.

Remittance claims face an “off-ramp” reality check

Kashkari singled out remittances as an often-cited stablecoin use case, but argued the benefits are overstated once conversion costs are included.

Using an example involving a family member in the Philippines, Kashkari said stablecoins may arrive quickly, but recipients still face fees and frictions when converting tokens into local currency to actually spend them. He also suggested many countries are unlikely to embrace stablecoin-driven dollarization at the expense of their own monetary policy.

His bottom line: for crypto and stablecoins, investors and policymakers should press for simple, practical explanations rather than broad claims about transformation.