In a recent statement, Federal Reserve Governor Christopher Waller expressed his support for stablecoins as they are likely to strengthen the status of the US dollar as a reserve currency.
However, he emphasized the importance of implementing clear regulations and guidelines for these digital tokens.
Waller noted that while stablecoins can be backed by any currency, the most common backing is the US dollar. As the chair of the Fed Board’s subcommittee on payments, he believes that stablecoins can enhance the current payment system.
However, he also emphasized the need for regulatory measures to ensure that these stablecoins are fully backed by assets and that there are proper checks in place to monitor their backing. Waller also mentioned that both major political parties support the idea of regulating digital currencies and have taken steps towards introducing legislation.
