- Federal Reserve Governor Christopher Waller expresses support for the use of stablecoins, suggesting they can improve payment efficiency.
- Waller states that stablecoins should operate alongside cash, bank deposits, and other digital money if they meet safety and transparency requirements.
- He highlights the need for a regulatory framework that is appropriately scaled to ensure the stability and security of stablecoin systems.
- Waller describes stablecoins as an additional payment choice for consumers and businesses, potentially offering lower-cost alternatives.
- He presents two models for integrating stablecoins into the U.S. financial system during the Silos 2025 conference.
At the Silos 2025 conference, Federal Reserve Governor Christopher Waller voiced strong support for stablecoins on Monday. Waller emphasized the potential for these digital currencies, which are linked to assets like the U.S. dollar, to offer greater efficiency in payment systems.
Waller noted that stablecoins should be allowed to function alongside traditional money types, including cash and bank deposits, if they meet necessary standards. He called for regulation that is “right-sized” to ensure both the safety and transparency of stablecoin operations.
According to Waller, If stablecoins present a lower cost alternative to consumers and businesses, I am all for it. Stablecoins are simply another choice available to consumers and businesses, provided they comply with required safeguards. He stated that these digital assets could become widely accepted as long as they meet established benchmarks for reliability.
Waller also introduced two potential models for stablecoin adoption in the U.S. financial system. Further updates about inflation and economic concerns were shared at the event, including comments from Cleveland Fed’s Beth Hammack, whose remarks can be read here regarding ongoing inflation pressures in the services sector.
Stablecoins are digital tokens designed to maintain a steady value by being pegged to assets, such as the U.S. dollar. As regulators and policymakers focus on establishing clear guidelines, Waller’s comments highlight growing institutional interest in digital money’s role within the broader financial system.
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