Fed Governor Waller: Banks Should Be Allowed to Issue Their Own Stablecoins

US Federal Reserve Governor Christopher Waller highlighted the potential of stablecoins to enhance the global influence of the US dollar, advocating for a regulatory framework that would permit banks to issue digital currencies tied to the dollar.

Speaking at a conference in San Francisco on February 12, Waller described stablecoins as a significant innovation within the crypto ecosystem, capable of advancing both retail and cross-border payments.

He observed that the stablecoin market has reached a level of maturity and would benefit from a US regulatory framework that specifically addresses the associated risks in a comprehensive and focused manner, allowing issuance by both banks and non-banks.

Waller emphasized that the regulatory framework should enable both banking and non-banking entities to issue regulated stablecoins and should consider the impact of regulations on the payment landscape, including other payment methods.