Fed Governor Sees Stablecoins Boosting Dollar Globally

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Federal Reserve Governor Christopher Waller highlighted the potential of stablecoins to strengthen and expand the international role of the U.S. dollar during a speech at the Wyoming Blockchain Symposium 2025.

Speaking in Teton Village, Waller described the current payments landscape as undergoing a “technology-driven revolution,” driven by advances in computing, data processing, and distributed networks.

Stablecoins, initially used to facilitate cryptocurrency trading, have evolved to provide features such as around-the-clock availability, fast transfers, and wide accessibility. Waller noted that these characteristics make stablecoins particularly valuable in countries experiencing high inflation or with limited access to traditional banking services.

“I believe that stablecoins have the potential to maintain and extend the role of the dollar internationally. Stablecoins also have the potential to improve retail and cross-border payments,” he said.

Waller highlighted the recent passage of the GENIUS Act, describing it as the first major U.S. legislation addressing crypto-assets. He called the law “an important step for the stablecoin payment market,” noting that it could help stablecoins reach their full potential in mainstream financial systems.

The Fed governor also discussed the growing role of artificial intelligence in payments. He observed that the financial sector has leveraged machine learning since the 1990s for tasks such as fraud detection, anti-money laundering, and forecasting payment trends. Recent advances in large language models and generative AI have further enhanced these capabilities.

Throughout his remarks, Waller emphasized a balanced approach to innovation, arguing that while the private sector should drive payment technology, the Federal Reserve remains critical in ensuring safe, efficient, and reliable infrastructure.

“There is nothing to be afraid of when thinking about using smart contracts, tokenization, or distributed ledgers in everyday transactions,” he said, comparing these innovations to traditional payment processes.

Waller revealed that the Federal Reserve is actively conducting technical research on tokenization, smart contracts, and AI in payments. He added that the central bank plans to engage more closely with industry innovators as traditional financial systems and digital assets increasingly converge.

His comments signal a continued U.S. focus on integrating emerging technologies while maintaining the dollar’s global stability and reinforcing trust in the nation’s payment networks.