Fed’s Kashkari Calls Crypto Useless, Backs AI

• Kashkari crypto comments dismiss digital assets as “utterly useless.”
• Stablecoin arguments labeled “buzzword salad” at economic summit.
• AI highlighted as more impactful than blockchain innovation.

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stirred controversy this week with strong remarks about the digital asset industry. Speaking at the Midwest Economic Outlook Summit, he described crypto as “utterly useless” when compared to artificial intelligence.

Kashkari crypto comments quickly spread across financial and blockchain communities. His remarks suggested that despite years of development and hype, digital assets have yet to demonstrate meaningful real-world value at scale.

While he acknowledged the growing interest in emerging technologies, he made it clear that he sees far greater potential in AI than in blockchain-based systems.

Stablecoins Face Harsh Words

A major part of Kashkari crypto comments focused on stablecoins. Supporters often argue that dollar-pegged digital tokens can improve payments, increase financial inclusion, and modernize settlement systems.

However, Kashkari dismissed these arguments as “buzzword salad.” In his view, simply placing the dollar on a blockchain does not automatically create innovation or solve structural issues in the financial system.

His skepticism aligns with a broader cautious stance among some policymakers who question whether stablecoins truly add value beyond existing digital banking infrastructure.

AI vs Blockchain: The Bigger Opportunity

Kashkari drew a clear contrast between crypto and artificial intelligence. He described AI as a transformative technology with visible, practical applications already improving productivity across industries.

By comparison, he suggested that blockchain technology has struggled to deliver comparable breakthroughs outside of speculative trading.

The Kashkari crypto comments are likely to intensify debate between regulators, developers, and investors. As policymakers continue shaping crypto legislation in the United States, such strong opinions from Federal Reserve officials could influence how digital assets are regulated moving forward.

Whether the market agrees or not, his remarks highlight a growing divide between traditional financial authorities and the crypto sector.

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