TETON VILLAGE, Wyo.—Federal Reserve Governor Christopher Waller said stablecoins could strengthen the U.S. dollar’s position in global finance, describing them as the latest example of how private-sector innovation continues to reshape payments.
Speaking at the Wyoming Blockchain Symposium 2025, Waller argued that far from being a threat, new tools like stablecoins, tokenization, and artificial intelligence are part of the natural evolution of a payment system built on technological progress.
Waller pointed to the unique properties of stablecoins—round-the-clock availability, rapid transferability, and circulation across borders—as features that make them valuable well beyond their original use in cryptocurrency trading. In countries facing high inflation or limited access to dollar banking, he said, stablecoins may provide a new means of holding and using U.S. dollars. That, in turn, could help reinforce the dollar’s international role while improving cross-border and retail payments, he said.
The governor’s comments came just weeks after the passage of the GENIUS Act, the first comprehensive U.S. law governing crypto-assets. Waller said the legislation provides much-needed regulatory clarity for stablecoin markets and could accelerate their adoption. He likened stablecoins to payment cards, another innovation that began in the private sector and matured into a global network intertwined with Federal Reserve clearing and settlement infrastructure.
Waller cast today’s changes as part of what he called a “technology-driven revolution” in payments, fueled by advances in computing power, data networks, and AI. Digital wallets, mobile payment apps, instant payments, and distributed ledgers all represent the latest chapter in a history of innovations that have continually transformed how money moves, he said.
Skepticism About Decentralized Finance
He stressed that skepticism about decentralized finance is misplaced, drawing parallels between a simple grocery store purchase and a crypto transaction. In both, there is a payment instrument, a technology to conduct the transaction, and a way to record it. Whether a receipt from a card terminal or a distributed ledger entry from a smart contract, Waller argued, the underlying process is the same.
In his view, the private sector should remain the default driver of payments innovation, taking the risks and allocating resources to explore new technologies. The Federal Reserve’s role, he said, is to ensure the system remains safe and efficient, providing core infrastructure and stepping in with its own innovations only when there is a clear market need. Historically, that has included Fedwire and, more recently, real-time interbank systems that private firms build on to serve consumers and businesses.
Waller also highlighted the payments industry’s early embrace of artificial intelligence. Since the 1990s, firms have used machine learning to detect fraud and monitor flows. More recently, generative AI and emerging “agentic AI” systems are being tested to automate reconciliation and enhance compliance. These advances, he said, show that payments remain on the cutting edge of financial technology adoption.
Looking ahead, Waller said the Fed is conducting research into tokenization, smart contracts, and AI to understand their potential for improving existing services. He called for deeper engagement between regulators and innovators as the boundaries between traditional finance and digital assets continue to blur.
The story of payments has always been one of technological advancement, he said, noting that the combination of private-sector creativity and public-sector support has built a U.S. system that is both efficient and resilient—and must keep evolving.