Stablecoins can benefit financial system, Fed governor says
The United States national debt has crossed $35 trillion, with $500 billion added to the government debt in the last two weeks alone.
On Oct. 18, Federal Reserve Bank Governor Christopher Waller told an audience at the Institute of Advanced Studies that well-regulated stablecoins could benefit the current financial system.
“Stablecoins can reduce the need for payment intermediaries and thereby reduce costs of payments globally,” Waller stated, but immediately qualified his remarks by saying that stablecoin “Safety is not assured.” The Fed official explained:
Waller also noted that decentralized finance can achieve a symbiotic relationship with traditional finance instead of supplanting it altogether. This viewpoint was previously pitched by some US lawmakers, who argue that decentralized finance and dollar-denominated stablecoins can extend dollar dominance by decades.
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Author: Vince Quill
