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Federal Reserve (Fed) Minneapolis President Neel Kashkari has once again made headlines with sharp remarks about the cryptocurrency market. Speaking at a panel, Kashkari questioned the real-world use cases of cryptocurrencies and stablecoins, arguing that many of the sector’s claimed benefits are exaggerated. Criticizing crypto advocates’ arguments about cross-border payments and financial access, he stated that cryptocurrencies do not provide concrete, large-scale benefits for consumers.
Kashkari Questions Crypto and Stablecoin Use Cases
During the panel discussion, Kashkari addressed claims that cryptocurrencies and stablecoins offer practical solutions for cross-border transactions. He specifically challenged the argument that crypto enables faster and cheaper money transfers. While acknowledging that traditional bank transfers can be slow and costly, Kashkari questioned whether stablecoins truly solve this issue. Referring to a scenario where someone in the United States sends money to a relative in the Philippines, he noted that while a stablecoin transfer may occur quickly, the process does not end there.
Kashkari emphasized that the recipient would still need to convert the stablecoin into local currency, creating additional costs and procedural steps. He also argued that assuming all parties globally would use the same stablecoin is unrealistic, adding that a single standardized digital currency worldwide is not feasible. Reiterating his long-standing criticism of the industry, Kashkari said he wants to see a real use case that works broadly for consumers. He described the responses he receives from crypto proponents as insufficient, labeling them as “word salad.”
Strong Remarks: “No Real Use Case”
One of the most striking statements during the panel was Kashkari’s assertion that, outside of illicit activities, cryptocurrencies do not offer a broad and sustainable use case. He argued that claims related to financial inclusion, faster transfers, and lower costs are not convincing in practice and fail to generate meaningful value for consumers. According to Kashkari, a significant portion of crypto assets are still primarily used for speculative trading. This, he said, highlights a fundamental lack of real-world application within the sector.
He also implied that high volatility and regulatory uncertainty make crypto assets difficult to adopt as reliable payment methods or stores of value. For cryptocurrencies to play a lasting role in the financial system, he argued, they must demonstrate more tangible and scalable use cases. His comments reflect the continued cautious and critical stance toward digital assets within the Federal Reserve. In previous speeches, Kashkari has described cryptocurrencies as “mostly speculation” and has questioned their ability to present a strong alternative to the traditional financial system.
The Fed’s View on Crypto and Market Impact
Kashkari’s remarks align with the broader skeptical approach of the Federal Reserve toward cryptocurrencies. Fed officials frequently warn about the potential impact of digital assets on financial stability, regulatory gaps, and consumer risks. According to experts, such statements may create short-term psychological pressure on the market. However, the crypto ecosystem continues to grow through institutional adoption and technological innovation. Comments from Fed officials are also closely monitored in terms of their implications for future regulatory frameworks.
Neel Kashkari’s strong criticism of cryptocurrencies and stablecoins once again highlights the ongoing divide between traditional finance and digital assets. As debates over real-world use cases and crypto’s role in the financial system continue, statements from Federal Reserve officials are likely to remain influential in shaping market perception.
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