Fed Governor’s case for an open-minded approach to stablecoins

Fed Governor Christopher Waller advocates for supporting emerging technologies in building modern payment infrastructure. Speaking on the second day of the Wyoming Blockchain Symposium, Waller highlighted the role of stablecoins and AI in modernizing payment systems. 

Fed researching latest tech innovations, Waller says 

According to Waller, the US Federal Reserve is studying new technologies like tokenization and artificial intelligence. He said it’s important for the Fed, as both a payment system operator and regulator, to understand how these technologies can improve existing services.

Waller noted that the U.S. payment system has always evolved through technology, with much of the innovation coming from the private sector. The Federal Reserve has supported this evolution by providing core infrastructure and bringing the industry together on solutions like payment standards. These efforts have created a safe and efficient payment system supporting both domestic and global commerce.

He stressed that the Fed must continue embracing new technologies to modernize its services and support private sector innovation. Waller has consistently supported stablecoins and authored a 2021 paper opposing central bank digital currencies (CBDCs), emphasizing how public-private collaboration drives innovation.

Technology-driven changes in payments 

Waller described the current period as a “technology-driven revolution” in the payment system, fueled by advances in computing power, data processing, and distributed networks. These advances enable new services including 24/7 instant payments, digital wallets, mobile payment apps, and expanded use of stablecoins and digital assets. The governor noted that these changes are not something to fear, as the payment system has historically evolved alongside technology.

There is nothing scary about this just because it occurs in the decentralized finance (DeFi) world—this is simply new technology to transfer objects and record transactions,

Waller said.

There is nothing to be afraid of when thinking about using smart contracts, tokenization, or distributed ledgers in everyday transactions.

Waller noted that while stablecoins initially emerged to facilitate crypto trading, their applications now extend far beyond the private sector. Stablecoins could expand the US dollar’s global use and improve retail and cross-border payments due to their availability and accessibility. AI applications, meanwhile, include enhanced fraud detection and compliance systems. “Agentic AI systems, which operate autonomously by planning and executing multistep processes, appear to be the next wave of AI advancement,” Waller added.

The Fed’s changing view on stablecoins

The U.S. Federal Reserve has recently shifted its stance on stablecoins, moving from a cautious approach to a more supportive one, particularly for those pegged to the U.S. dollar. This change is largely in response to the recently signed GENIUS Act, which provides a federal framework for stablecoins. The Fed, along with other regulatory bodies, has acknowledged the potential of stablecoins to improve payment efficiency and even extend the international role of the dollar. 

The Fed’s July 2025 Federal Open Market Committee meeting notes show that stablecoins and similar private money products are growing quickly. The Board of Governors said stablecoins could improve the payment system, but it’s important to keep an eye on the sector and the assets that back these coins.

The Fed has also taken steps to support banks working with digital assets. It ended a program that monitored banks’ crypto activities and removed rules that discouraged them from engaging with the sector. These actions demonstrate the Fed’s effort to balance digital asset oversight with enabling banks to engage confidently with crypto companies.