Fed’s Waller Says Stablecoins Could Back Dollar’s Reserve Status
- Central banker says the digital assets need clear regulations
- Stablecoins could be a ‘net addition’ to US payments system
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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.