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
U.S. CLARITY Act Sparks Controversy: White House Crypto Official and Banking Industry Clash Over Stablecoin Incentives
On March 8th, the discussion of the U.S. CLARITY Act sparked debates between the banking industry and White House officials. The president of the Texas Independent Bankers Association stated that a compromise would impact the local economy, while White House advisors warned that no compromise could lead to disastrous consequences.
GateNews57m ago
CME Data: Probability of the Federal Reserve holding interest rates steady in March rises to 96.3%
Gate News Report, March 7 — According to CME "FedWatch" data, the probability of the Federal Reserve maintaining interest rates in March is 96.3%, while the probability of a 25 basis point rate cut is 3.7%.
GateNews9h ago
Chicago Federal Reserve President Goolsbee: The Federal Reserve is expected to start cutting interest rates by the end of the year
Gate News Report, March 7th, Chicago Federal Reserve Chair Goolsby stated that the Federal Reserve is expected to start cutting interest rates before the end of this year.
GateNews10h ago
Natixis Analyst: The Federal Reserve's March Meeting May Face Calls for Rate Cuts
Gate News Report, March 7 — Christopher Hodge from Natixis stated that the Federal Reserve may face calls for rate cuts at the March FOMC meeting. He pointed out that if the economic data for February shows weakness and January's data is revised downward, the Fed's decision to hold steady will be questioned by the market. He believes this situation will reinforce the dovish view that recent labor market data may just be "fool's gold" (appearing good on the surface but lacking real value).
GateNews10h ago
The probability of the Federal Reserve cutting interest rates in June has risen to approximately 50%
Gate News Report, March 7 — Traders now estimate the probability of the Federal Reserve cutting interest rates in June has risen to about 50%, up from just 35% before the employment data was released.
GateNews11h ago
Emphasize technological neutrality! The Federal Reserve: The capital recognition method for "tokenized securities" should follow that of traditional securities
The Federal Reserve and other agencies have issued new guidelines for the banking industry, requiring tokenized securities to follow the same regulatory capital standards as traditional securities, emphasizing that technological form does not affect the method of capital calculation. This reflects regulatory authorities' focus on the legal nature and risk assessment of financial assets, demonstrating the gradual integration of banks and blockchain finance, which helps banks evaluate the risks and costs of tokenization businesses.
区块客17h ago
