Christopher Waller, a member of the U.S. Federal Reserve (Fed) Board, expressed strong support for stablecoins, DeFi, and real-world asset (RWA) tokenization. At a recent blockchain symposium, he emphasized that cryptocurrencies are playing a crucial role in the digital transformation of the financial system, stating that "payment systems are at the center of a technological revolution".
Waller specifically mentioned that stablecoins could be an important means of maintaining and expanding the international status of the U.S. dollar. He explained that "stablecoins can improve retail payments and cross-border transfer efficiency" and are developing in a way that complements rather than replaces existing payment systems. However, he added that most stablecoin payments still rely on traditional financial infrastructure.
The Fed's recent active technological research is also noteworthy. Waller stated that they are "intensively studying smart contracts, artificial intelligence (AI), distributed ledger technology, and real-world asset tokenization" to support convergence between traditional finance and the digital asset ecosystem. He emphasized the importance of public-private collaboration and the need for close cooperation with innovative companies.
Waller also mentioned the recently passed GENIUS Act, describing it as an "important milestone for the growth of the stablecoin ecosystem for payments". The bill will help privately issued stablecoins operate within a more clear regulatory framework and is expected to promote digital asset adoption in the United States.
Waller's statement is interpreted as part of a gradual policy shift following the Fed's withdrawal of the '2022 guidelines' in April this year, which had previously limited banks' participation in cryptocurrency-related activities.
The stablecoin market currently has a market capitalization of approximately $280 billion. Tether (USDT) maintains its lead, accounting for 60% of the market with a circulating supply of about $167 billion. USD Coin (USDC) by Circle holds a 24% market share, and USDe has overtaken MakerDAO's stablecoin to take third place. While new stablecoins like Ripple's RLUSD and World Liberty Finance's USD1 have emerged, their market share remains minimal.
Waller emphasized to regulatory bodies the need to embrace innovation, stating, "There's no need to be afraid of decentralized finance. Only the technology has changed; the fundamental transaction and receipt issuance methods remain the same, it's simply a new way of asset movement and recording".
This speech is interpreted as a signal of potential policy changes, as a high-ranking U.S. central bank official directly delivered a positive message about the future of cryptocurrencies and their intersection with traditional finance.
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