This week Federal Reserve Governor Waller gave a speech on stablecoins, exploring their use cases, business models and challenges. The Governor has long been dismissive of CBDCs and supportive of stablecoins, provided they are appropriately regulated. In fact, he gave another speech on stablecoins in 2021 which arguably was even more supportive, calling for appropriate regulation that’s not overly heavy-handed.
In that earlier speech he said that the ownership of stablecoin issuers doesn’t need to be restricted in the same way it is for banks. That’s because stablecoin issuers cannot provide lending, unlike banks. That is one of the issues where Democrats and Republicans don’t agree with the latest round of stablecoin Bill drafts.
The Governor’s latest speech explored the dollar stablecoin use cases: crypto transactions, foreigners who want to hold dollars, cross border payments and potentially broader retail payments.
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