Federal Reserve Governor Christopher Waller Affirms Stablecoins Could Become a Key Element of the Future Payment Ecosystem

Christopher Waller, Governor of the U.S. Federal Reserve, emphasized that stablecoins have the potential to become a crucial component of the future payment ecosystem. According to him, stablecoins are not merely a crypto innovation but rather a part of the evolution of the payment system that can enhance speed, efficiency, and competition within the financial sector.

Speaking at the Sibos 2025 Conference, Waller stated that stablecoins deserve to be regarded as a “legitimate payment option” that can coexist with traditional financial instruments. He noted that consumers now demand fast and low-cost services, while businesses require liquidity and settlement efficiency. With stablecoins, cross-border transactions and digital payments could be conducted more simply, while reducing the burden of today’s expensive infrastructure costs.

Furthermore, Waller revealed that the Federal Reserve is currently conducting technical research on tokenization, smart contracts, and the integration of artificial intelligence (AI) into payment systems. He stressed that private-sector innovations should be seen as a complement to traditional payment systems, provided they remain within an adequate regulatory and supervisory framework.

Although he expressed optimism, Waller also underscored the importance of strict risk controls in the development of stablecoins. He warned that without security standards, consumer protection, and clear regulations, stablecoins could instead create vulnerabilities — both in terms of cyberattacks and the stability of the financial system. For this reason, he believes close collaboration between regulators and crypto innovators is crucial for the safe growth of stablecoin adoption.

Waller’s statement reinforces his views expressed on several earlier occasions. In a conference in New York, he asserted that stablecoins could bring “competition, efficiency, and speed” to the U.S. payment system, although he also cautioned that global finance cannot sustain hundreds of stablecoins without uniform standards. At another forum at the Dallas Fed, Waller highlighted that stablecoins have the potential to lower transaction costs for both consumers and businesses if competition in the payment sector increases.

With open support from a senior U.S. monetary authority, the argument that stablecoins will become one of the main pillars of the payment system is gaining further legitimacy. However, regulatory challenges, security concerns, and technological readiness remain critical steps before stablecoins can truly mature as a foundation for modern payments in the United States.