Federal Reserve Governor believes stablecoins are already fulfilling the role of the digital dollar

A Federal Reserve governor fond of stablecoins

This member of the Board of Governors of the Federal Reserve expressed this opinion in a speech transcribed yesterday. Christopher Waller believes that a “technological revolution” is underway in the payments industry in the United States.

This advance has sparked debate, and asked a question that he considers important: should the government offer an alternative? In other words, does the United States need to develop a digital dollar issued by the Central Bank (an MNBC), rather than allowing private sector initiatives to develop?

The Governor of the Federal Reserve brings his opinion to this thorny question:

“My skepticism about the need for an MNBC comes from the real and rapid innovation that is taking place with regard to payments. […] The innovation of payments, and the competition it brings, is good for consumers. “

👉 Find our guide – What is a central bank digital currency (MNBC)?

The public must be heard about payment systems

Rather than having a prescriptive attitude, which may be the norm within regulatory entities, Christopher Waller therefore believes that the impetus must come from the public:

“The market and the public are telling us that the US payments system can be improved. We should hear this message. “

And that may go through private stablecoins, rather than an MNBC, again according to this Fed governor. Proof of the enthusiasm for these solutions, their capitalization, which has quintupled in 2021 alone, as he reminds us:

Growth in the capitalization of stablecoins over the year 2021 – Source: CoinGecko

👉 To go further – United States: a study assures that 16% of Americans have invested in cryptocurrencies

Regulators holding back the stablecoin industry and innovation?

According to Waller, the recent outcry against stablecoins – including the recommendations of a presidential task force – is therefore not necessarily appropriate:

“I think others [approches] exist, which better promote innovation and competition while protecting consumers and taking into account the risks to financial stability. “

The task force, which recently submitted its report, indeed proposes to regulate stablecoins like banks, an initiative that would considerably slow down this sector, by removing what precisely distinguishes it from the banking system.

The Governor of the Federal Reserve therefore concludes by explaining that the development of major innovations should not be prevented out of fear:

“Stablecoins are new, but their savings are not. We know how to secure this type of privately issued currencies, […] we already have examples. […] So we should get down to business. “

This very pro-stablecoins positioning is particularly notable, since it comes from an institution that is notoriously hostile to anything that closely or remotely resembles a cryptocurrency. It shows in any case that even within the walls of the Fed, the breakthrough of the sector questions. In the United States, the coming months will therefore be particularly crucial for stablecoins.

👉 On the same subject – United States: the SEC appointed to regulate American stablecoins

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About the author: Marine Debelloir


Deputy Editor-in-Chief on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.

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