According to a report from Bloomberg, Christopher Waller, a member of the Federal Reserve Board, expressed his views on stablecoins in a speech hosted by the Atlantic Council on Thursday. He believes that stablecoins may help maintain the US dollar’s status as a reserve currency, but it is necessary to have a clear set of regulatory rules.
Stablecoins are digital tokens designed to maintain a stable value, with the issuer typically committing to hold liquid assets, such as US dollars or government bonds, equivalent to the tokens created. According to data from DefiLlama, the total market value of stablecoins is currently around $233 billion, with the largest being the US dollar stablecoin USDT issued by Tether.
Waller also stated, “I believe stablecoins are a net gain for our payment system.” However, he also pointed out that stablecoins “may need some regulatory mechanisms to ensure the funds are indeed present” and that an institution should be responsible for reviewing their full payment capacity.
Waller added that both major political parties in the United States consider it necessary to advance legislation related to digital currencies. This week, a bipartisan group of senators proposed a bill aimed at establishing a regulatory framework for stablecoins.