Fed’s Governor Says Stablecoins Could Expand US Dollar Reach

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US Federal Reserve Governor Christopher Waller suggested that stablecoins have the potential to extend the influence of the US dollar. He advocated for a regulatory framework that would permit banks to issue digital currencies linked to the dollar.

During a conference in San Francisco on February 12, Waller highlighted stablecoins as a significant innovation within the crypto ecosystem, capable of enhancing both retail and international payments.

He remarked that the stablecoin market has matured and would gain from a US regulatory framework that addresses stablecoin risks in a targeted and comprehensive manner. Waller emphasized that both banks and non-banks should have the option to issue stablecoins.

The proposed framework should enable the issuance of regulated stablecoins by both banking and non-banking entities, while considering the regulatory impacts on the payment landscape and competing payment instruments.