Waller on Stablecoins

NEW YORK (Reuters) – Federal Reserve Governor Christopher Waller stated on Tuesday that stablecoins function as "synthetic" dollars and could enhance the financial system.

Waller emphasized that these dollar-linked digital assets have significant potential benefits and could help eliminate inefficiencies within the financial system. His comments were made during The Clearing House Annual Conference 2024 in New York. However, he noted that legislation is necessary to address safety concerns, as these assets are vulnerable to runs that could destabilize the financial system.