FED Director Waller: If well regulated, stablecoins can consolidate the reserve currency status of the US dollar

According to Bloomberg, Federal Reserve Board member Christopher Waller expressed his views on stablecoins during a speech hosted by the Atlantic Council on Thursday. He believes that stablecoins may help maintain the status of the US dollar as a reserve currency, but only if there is a clear set of regulatory rules.

Waller, who serves as the chairman of the Federal Reserve's Subcommittee on Payments, said, "If we can establish good regulatory regulations to enable these currencies to be implemented, it will only consolidate the position of the US dollar as a reserve currency

Stable currency is a kind of digital token designed to maintain stable value. The issuer usually promises to hold liquid assets equivalent to the token created, such as US dollars or treasury bond. According to DefiLlama's data, the current total market value of stablecoins is approximately $233 billion, with the largest being the USDT stablecoin issued by Tether.

Waller also stated, "I believe that stablecoins are a net gain for our payment system." However, he also pointed out that stablecoins "may require some regulatory mechanisms to ensure that funds do exist," and there should be institutions responsible for reviewing whether they have full solvency.

Waller added that both major political parties in the United States believe it is necessary to advance legislation related to digital currencies. On Tuesday of this week, a bipartisan group of senators proposed a bill aimed at establishing a regulatory framework for stablecoins.