Fed’s Waller: Stablecoins Fuel Payments Revolution

Meta-description: Federal Reserve Governor Waller says stablecoins are part of a payments revolution, boosting efficiency, dollar demand, and innovation.

Federal Reserve Governor Christopher Waller stated that stablecoins and other digital innovations are part of a “revolution in payments” driven by technology, artificial intelligence, and decentralized networks. His remarks, delivered at the Wyoming Blockchain Symposium on August 20, 2025, signal growing Federal Reserve recognition of cryptoassets within the financial system.

Stablecoins as innovation drivers

Waller emphasized that stablecoins, digital wallets, and smart contracts are reshaping how money moves. He noted these tools are not a threat but rather the natural evolution of technology applied to payments.

Regulatory clarity with the GENIUS Act

The governor praised the passage of the GENIUS Act in July, a law providing stronger regulatory clarity for the stablecoin market. According to Waller, this framework will allow private companies to invest more confidently, helping dollar-backed stablecoins expand their reach.

Economic and global benefits

Waller pointed out that stablecoins could lower transaction costs, increase competition in the payments sector, and even strengthen global demand for the U.S. dollar. He underlined that while innovation is led by the private sector, the Federal Reserve plays its role in ensuring safety and stability.

The Fed’s role in innovation

Although acknowledging the transformative role of crypto, tokenization, and distributed ledgers, Waller reaffirmed that the Fed’s role is to provide core infrastructure and maintain system security. He argued that collaboration between public oversight and private innovation can make payments faster, cheaper, and more inclusive.

Waller’s comments mark a shift in tone: instead of framing stablecoins as a risk, the Federal Reserve now highlights them as a cornerstone of the future of money. The open question is how far the central bank will let this sector grow without direct intervention.

Sources

• Federal Reserve – Official Speech by Christopher J. Waller (Aug 20, 2025): federalreserve.gov
• Reuters – Fed’s Waller says stablecoins could lower payment prices (July 10, 2025): reuters.com
• American Banker – Waller: Nothing scary about crypto innovations (Aug 2025): americanbanker.com