According to a report by Bloomberg, Christopher Waller, a governor of the US Federal Reserve (Fed), stated his views on Stablecoins during a speech hosted by the Atlantic Council on Thursday. He believes that Stablecoins could help maintain the US dollar's status as a reserve currency, but only if there is a clear regulatory framework in place.

Waller, who chairs the Fed's Payments Committee, said: "If we can get good regulatory regimes in place that allow these coins to operate, that will only solidify the dollar's status as a reserve currency."

Stablecoins are digital tokens designed to maintain a stable value, with issuers typically promising to hold liquid assets such as US dollars or government bonds equivalent to the tokens they create. According to data from defillama, the total market capitalization of Stablecoins is currently around $233 billion, with the largest being the US dollar Stablecoin USDT issued by Tether.

Waller also stated: "I think Stablecoins are a net positive for our payment system." However, he noted that Stablecoins "may need some regulatory mechanism to ensure the funds are actually there" and that there should be an institution responsible for reviewing their solvency.

Waller added that both major US political parties recognize the need to advance digital currency-related legislation. On Tuesday, a bipartisan group of senators introduced a bill aimed at establishing a regulatory framework for Stablecoins.