Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, sharply criticized cryptocurrencies during an economic conference in Fargo, North Dakota, stating that despite existing for over a decade, cryptocurrencies have no practical benefit. He described them as completely useless with no clear everyday application. Kashkari contrasted the performance of cryptocurrencies with modern artificial intelligence tools, which have effectively improved daily needs for consumers and businesses. He also rejected stablecoins, arguing that they offer no significant advantage over existing payment systems like Venmo, PayPal, or Zelle. During a Q&A, he questioned the value of stablecoins by asking what they could do that sending five dollars via Venmo or PayPal could not. Kashkari emphasized that although stablecoins claim to speed up and reduce the cost of international money transfers, recipients still need to convert funds into local currencies, adding extra costs and complications. He supported the Federal Reserve’s independence, stating that central bank autonomy is essential for effective economic policy free from political pressure and based purely on data and analysis. Discussing the economic outlook, Kashkari noted that inflation has decreased to around two to three percent, while unemployment has slightly risen to near four percent. After multiple rate cuts in recent years, the Federal Reserve is now following an “almost neutral” policy stance. Previously, Kashkari likened cryptocurrencies to the 1990s “Beanie Babies” bubble, asserting they provide no real economic value. He observed that digital assets have no significant use in the daily lives of American consumers and are often used to circumvent banking regulations.
Source: bitcoinmagazine
