Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said cryptocurrency has no real impact on the financial industry.
The remarks highlight a continuing divide between central bank leadership and the digital asset industry regarding the utility of blockchain technology. As regulators weigh the integration of these assets into the global economy, the dismissive stance of a regional Fed president signals a lack of institutional buy-in.
Speaking during a Midwest Federal Reserve event on Feb. 19, 2026 [2], Kashkari said cryptocurrency is "utterly useless" compared to artificial intelligence [1]. He said the asset class is like ESG for libertarians and its impact on the financial industry will be nothing [1].
Kashkari did not limit his criticism to volatile assets. He also said stablecoins, which are designed to maintain a steady value, are a "buzzword salad" [4]. According to Kashkari, these technologies have yet to demonstrate real utility, or a meaningful effect on the financial system [3].
These comments occurred while Bitcoin was trading at $81,066.72 [2]. Kashkari's perspective contrasts with the growth of the market, suggesting that price action does not equate to systemic importance or functional value.
Throughout the event, Kashkari said that while AI is driving tangible shifts in productivity and operations, crypto remains a speculative endeavor without a core purpose in the financial infrastructure [3].
“Crypto is "utterly useless" compared to AI.”
Kashkari's comments reflect a hardline skepticism within the Federal Reserve toward the 'utility' narrative of blockchain. By comparing crypto to ESG and dismissing stablecoins, he is arguing that the perceived innovation is largely rhetorical rather than structural. This suggests that the Fed may continue to view digital assets as speculative vehicles rather than legitimate improvements to the payment or banking systems.
