Fed Minneapolis Leader Kashkari Calls Crypto 'Basically Useless': What This Means for the Market

Federal Reserve Minneapolis President Neel Kashkari has openly criticized cryptocurrency, stating it is “basically useless” for consumers, according to reporting from Reuters. The comment underscores ongoing tension within policy circles about digital assets and their utility, even as crypto markets continue to mature.

Understanding Kashkari’s Position

Kashkari leads one of the 12 regional Federal Reserve banks and sits on the Fed’s policy committee. His role gives his statements particular weight in financial markets. The Minneapolis Fed president has historically taken a cautious stance on emerging financial technologies, often emphasizing consumer protection and systemic risk concerns.

The “basically useless” characterization isn’t new territory for traditional finance leaders. However, Kashkari’s direct language reflects a fundamental disagreement with crypto advocates about whether digital currencies solve real-world problems for everyday consumers. His framing suggests skepticism about claimed use cases like financial inclusion, faster payments, or inflation hedging.

What “Basically Useless” Actually Means

Breaking down Kashkari’s critique reveals several implicit arguments:

• Current cryptocurrencies haven’t achieved mainstream adoption for daily transactions
• Existing payment systems already serve consumer needs effectively
• Volatility and complexity create barriers rather than solutions
• Regulatory uncertainty limits practical utility

This perspective represents one end of the spectrum within Fed leadership. Not all regional Fed presidents share identical views on crypto, creating internal policy diversity.

The Broader Context

Kashkari’s comment arrives amid ongoing regulatory developments and market evolution. While some Fed officials have acknowledged potential benefits of blockchain technology, others maintain skepticism about cryptocurrency specifically. The Minneapolis Fed leader’s stance aligns with central bank orthodoxy that prioritizes monetary policy control and financial stability over decentralized alternatives.

The timing is notable given continued crypto market volatility and regulatory scrutiny. Statements from high-profile Fed officials can influence market sentiment and policy direction, even when they represent personal views rather than official Fed positions.

Key Takeaway

Kashkari’s critique reflects the traditional finance establishment’s persistent skepticism toward crypto. While his personal views don’t dictate Fed policy, they signal that regulatory caution will likely remain the dominant approach. The market should monitor whether this skepticism translates into concrete policy actions or remains rhetorical positioning. The real question isn’t whether Kashkari approves of crypto, but whether Fed leadership will eventually need to engage with digital assets more substantively regardless of their reservations.