Investing.com - Federal Reserve Governor Christopher Waller said Sunday that the global adoption of stablecoins could extend the reach of US monetary policy to countries that use the digital tokens.
"Countries that adopt it, it's like a fixed exchange rate system," Waller said at an event in Dubrovnik, Croatia. "You are going to import US monetary costs, so it's broadening the reach of US monetary policy in countries that use more stablecoins."
The remarks align with comments Waller made in a speech in February 2025, when he expressed support for stablecoins because they are likely to propagate the US 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, with issuers typically promising to hold liquid assets such as US dollars or Treasury bills in equal value to tokens created.
Waller criticized the concept of central bank digital currencies, saying there is nothing that "requires a CBDC and only a CBDC to fix" and that it is a "solution in search of a problem." He said "almost every major central bank in the world has just stopped" pushing for CBDCs because "they just can't find a reason for this.
The European Central Bank plans to roll out a digital version of the euro in 2029, following a pilot phase starting as early as next year. The project aims to secure monetary sovereignty amid concerns about Europe's reliance on US payment firms like Visa Inc Class A (NYSE:V) and Mastercard Inc (NYSE:MA), as well as the emergence of dollar-pegged stablecoins.
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