The American Federal Reserve -Governor Christopher Waller used the SIBOS 2025 phase to emphasize the growing interest of the FED in new technologies that shape the financial system.
He made public That the Central Bank Hands-on research carries out tokenization, smart contracts and artificial intelligence in the payment sector.
According to Waller, this work is designed to understand how private innovators implement these tools and determine where infrastructure upgrades to the infrastructure of the FED are possible.
Focus on stablecoins
In his comments, Waller insisted on regulators and participants in the industry to see Stablecoins as a continuation of the long tradition of America of payment innovation.
He argued that Stablecoins should be recognized as a different legitimate payment option, because consumers have ever received choices through banks, map networks and fintech companies.
According to Wallerm, these digital assets represent “a new form of private money” that can exist in addition to existing payment instruments if it is supported by robust guarantees.
By positioning Stablecoins in this way, Waller tied their adoption to the American culture of choice and competition. He said:
“I can choose a provider if I want to park my emergency fund in a high-interest savings account, and I can choose different providers if I want to process a cross-border payment, pay someone with a QR code or buy a crypto-asset. A choice of providers also encourages competition on costs, speed, efficiency and user experience.”
Waller noted that individuals often give priority to speed and convenience, while companies focus on liquidity management and settlement efficiency. He said that introducing stablecoins in this mix could lower the established operators to lower costs and improve service quality.
Waller emphasized that the competition effects of blockchain-based solutions would put pressure on traditional players to innovate and deliver tangible products, especially with cross-border payments.
He pointed out that the passages remain expensive because of the complex web of infrastructure and intermediaries. However, he believes that Stablecoins can cut through that complexity, offering efficiency impacts translating into lower costs for end users.
Risk management
Waller, however, emphasized that no technology should be taken over without supervision.
According to him, the regulatory protection is of crucial importance to ensure that Stablecoins earn the trust of the public while retaining financial stability.
According to him, the new systems could expose consumers to cyber security threats and systemic vulnerabilities due to the lack of common standards and coordinated risk management.
He said:
“Achieving security and resilience means that these digital platforms are paved against abuse, with redundancy and guarantees that correspond to the scale of domestic and global payments.”
