Bitcoin (BTC) news: Fed's Kashkari says crypto is 'utterly useless'

CoinDesk

by Krisztian Sandor

February 19, 2026

AI-Generated Deep Dive Summary

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, delivered a strongly critical assessment of cryptocurrencies during a speech at the 2026 Midwest Economic Outlook Summit. He referred to crypto as "utterly useless," emphasizing that it has yet to demonstrate real-world utility despite its decade-long existence. In contrast, he highlighted artificial intelligence (AI) as having significant long-term potential for the U.S. economy. Kashkari questioned the practicality of cryptocurrencies, pointing out that few in the audience had actually used bitcoin for transactions, while many had utilized AI tools like ChatGPT recently. Kashkari also expressed skepticism about stablecoins, dismissing claims that they offer meaningful improvements over existing payment systems like Venmo. He likened discussions around stablecoins to a "buzzword salad," challenging proponents to explain how they provide advantages beyond what is already available through traditional platforms. When considering cross-border payments, Kashkari noted that while stablecoins may offer theoretical benefits, practical issues such as high conversion costs and the need for local currency transactions undermine their utility. His remarks stand in sharp contrast to the stance of the Trump administration, which has championed the strategic importance of bitcoin and U.S.-backed stablecoins. Treasury Secretary Scott Bessent and others have argued that regulated stablecoins could enhance the dollar's global dominance and strengthen U.S. financial influence. Kashkari's skepticism raises questions about the broader regulatory and adoption trajectory for digital assets, particularly as policymakers grapple with their potential impact on the global economy. For readers interested in crypto, Kashkari's comments highlight ongoing debates about the practical applications and future of cryptocurrencies. While some see vast potential in blockchain technology, critics like Kashkari emphasize the lack of tangible benefits over existing systems. This tension between innovation and proven utility will likely continue to shape the regulatory landscape and public perception of digital assets. As Kashkari pointed out, the focus on crypto's utility is critical for its long-term viability. Whether through stablecoins or other forms, the ability to deliver clear advantages over traditional financial systems will be key to determining their success. For now, however, Kashkari's assessment serves as a reminder that many questions remain unanswered, leaving the future of cryptocurrencies uncertain.

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Originally published on CoinDesk on 2/19/2026