In a recent statement, Waller said both banks and non-banks should be allowed to issue stablecoins. He noted that these digital assets could improve retail and cross-border payments.
This bold stance highlights the growing acknowledgment of stablecoins as a game-changer in the financial system.
Stablecoins: Innovation, Accessibility, and Oversight
Stablecoins are cryptocurrencies pegged to traditional assets like the U.S. dollar, making them less volatile than other digital currencies. Waller believes stablecoins could speed up payments, lower costs, and increase access to financial services. For retail payments, this means quicker transactions and less reliance on traditional intermediaries. Cross-border payments are often bogged down by high fees and slow processing.
Governor Waller’s support for both banks and non-banks issuing stablecoins signals a move toward a more level playing field. He believes innovation shouldn’t be limited to big banks. Non-banks, including fintech companies, have been some of the biggest innovators in the digital payments space. So, Waller wants to ensure they aren’t left out in the cold.
Federal Reserve Governor Christopher Waller says stablecoins have the potential to extend the international role of the dollar during his remarks at a conference in San Francisco https://t.co/cojR9Lytoy pic.twitter.com/L66CX6hTte
— Bloomberg TV (@BloombergTV) February 12, 2025
While Waller is optimistic about stablecoins, he also stressed the need for proper oversight. Ensuring these assets are backed by reliable reserves and operate within a robust regulatory framework is essential to building trust in the system.
More About Stablecoins
Robinhood CEO Vlad Tenev highlighted how stablecoins play a crucial role in facilitating transactions and settlements between cash and crypto, operating around the clock, even when traditional banks are closed, such as over the weekends. He emphasized that stablecoins allow for continuous trading and settlements, saying, “It’s a 24/7 network that’s running on software.”
🚨NEW: Robinhood CEO Vlad Tenev explains how stablecoins help to facilitate transactions and settlements between cash and crypto 24/7 particularly on weekends when banks are closed.
“It’s a 24/7 network that’s running on software.” pic.twitter.com/glawSEoNKs
— Cointelegraph (@Cointelegraph) February 14, 2025
This uninterrupted access to financial transactions offers flexibility and convenience for users, ensuring they can move between cash and crypto seamlessly without relying on the limited hours of traditional banking systems.
Disclaimer
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