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
TD Cowen: Expect more crypto companies to obtain Federal Reserve main accounts, banks powerless to stop it
TD Cowen指出，随着某 crypto company gaining access to the Federal Reserve's core payment system, more crypto companies are expected to obtain this permission this year. The company was designated as a "limited-use" account, and despite facing opposition and lawsuits from the banking industry, the Federal Reserve's approval process will continue to move forward.
GateNews3h ago
CME Federal Reserve Watch: 97.3% chance of holding interest rates steady in March
Gate News Report, March 6 — Today, CME "Federal Reserve Watch" data shows: the probability of the Federal Reserve cutting interest rates by 25 basis points by March is 2.7%, and the probability of holding rates steady is 97.3%. The probability of the Federal Reserve cumulatively cutting interest rates by 25 basis points by April is 12.5%, with an 87.3% chance of keeping rates unchanged, and a 0.3% chance of a total cut of 50 basis points. By June, the probability of a cumulative 25 basis point cut is 30.7%.
GateNews3h ago
The strengthening of the US dollar suppresses Bitcoin's rebound, and Middle East conflicts may trigger a price decline
The tense situation in the Middle East has triggered a strengthening of the US dollar, putting pressure on Bitcoin and high-risk assets. Analysis indicates that the appreciation of the dollar and high inflation may limit capital inflows into the crypto market. Although Bitcoin experienced a brief rebound, it still faces institutional sell-offs and market weakness. Investors should monitor the dollar trend and market dynamics to assess potential risks.
GateNews3h ago
The Federal Reserve releases guidance on tokenized securities, marking a new phase in bank innovation in blockchain finance
The Federal Reserve recently issued guidance, treating tokenized securities the same as traditional securities, removing regulatory barriers, and supporting financial institutions in exploring blockchain asset management. This policy provides a clear direction for tokenized finance and may lead to a large transfer of assets to blockchain, achieving efficient settlement and increased liquidity.
GateNews4h ago
The Bank of Canada completes a $100 million CAD tokenized bond pilot, with the Samara project validating the feasibility of blockchain in government bond issuance and settlement
The Bank of Canada announced the test results of the "Samara Project," successfully issuing and managing 100 million CAD worth of tokenized government bonds through blockchain technology. The project applied distributed ledger technology in bond issuance, trading, and settlement, enhancing transparency and efficiency. Regulatory authorities remain cautious, believing that infrastructure and regulatory issues still need to be addressed. This pilot demonstrates the potential of blockchain in the financial sector.
GateNews4h ago
Trump publicly pressures to advance the "Clarity Act," Ripple CEO Brad Garlinghouse supports crypto regulation reform
On March 6th, Ripple CEO Brad Garlinghouse supported Trump's tough stance on the "Clarity Act," calling on the U.S. Congress to push for the bill to clarify the regulatory framework for digital assets. Currently, due to disputes over stablecoin yield models, the bill is stalled in the Senate, affecting market sentiment.
GateNews4h ago
