Federal Reserve Bank of Minneapolis President Neel Kashkari delivered sharp criticism of cryptocurrency while defending the central bank's independence during a North Dakota speaking engagement. Kashkari dismissed cryptocurrency as 'utterly useless' despite its decade-long existence, contrasting it with artificial intelligence tools that have practical daily applications.

When addressing payment innovations like stablecoins, Kashkari challenged their utility compared to existing systems like Venmo and Zelle. 'I can send any one of you $5 with Venmo or PayPal or Zelle. So what is it that this magical stablecoin can do?' he asked. His comments come as the Fed faces increasing political scrutiny.

Kashkari also responded to recent criticism from Kevin Hassett regarding a New York Fed study on tariffs, characterizing the remarks as 'another step to try to compromise the Fed's independence.' He noted multiple recent attempts to undermine central bank autonomy, including a December subpoena from the Department of Justice to the Board of Governors. Kashkari emphasized that every advanced economy maintains an independent central bank because monetary policy decisions benefit the public more when 'based on data and analysis, not on short term political gains.'