Fed’s Waller Says Stablecoins Could Back Dollar’s Reserve Status

Federal Reserve Governor Christopher Waller said he’s supportive of stablecoins because they are likely to propagate the dollar’s status as a reserve currency, though they need a clear set of rules and regulations.

Stablecoins are digital tokens intended to hold a steady value. Issuers typically promise to hold liquid assets, such as dollars or Treasury bills, in equal value to tokens created.

WATCH: Federal Reserve Governor Christopher Waller says stablecoins are likely to strengthen the dollar’s status as a reserve currency.

Source: Bloomberg

The Fed governor noted that stablecoins could be backed by any currency, but are commonly backed by dollars.

“I view stablecoins as a net addition to our payment system,” said Waller, who is chair of the Fed ...