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