07.02.2025 10:21
U.S. Federal Reserve official Christopher Waller stated that regulated stablecoins will strengthen the role of the U.S. dollar as a global reserve currency. Waller expressed that stablecoins will enhance the international use of the dollar by introducing innovations in payment systems.
Federal Reserve Board Member Christopher Waller believes that stablecoins will strengthen the status of the US dollar as the global reserve currency. Waller emphasized that stablecoins will enable greater international adoption of the dollar by providing innovative ways in payment systems.
Stablecoins Will Enhance the Global Power of the Dollar
Christopher Waller, a member of the Federal Reserve Board, stated that he anticipates regulated stablecoins will reinforce the position of the US dollar as a global reserve currency. Speaking at a regulated panel, Waller highlighted that these digital assets will enhance the dollar's effectiveness in the global financial system by increasing its accessibility.
According to Waller's assessment, stablecoins will bring innovative solutions to payment systems, increasing the efficiency of financial transactions and expanding the dollar's role in international trade. This system, supported by effective regulations, will also boost confidence in the dollar as a reserve currency.
According to research published by Andreessen Horowitz in October, more than 99% of the stablecoin market consists of dollar-based transactions. Tether, which holds a leading position in this area, accounts for approximately 80% of the total transaction volume.
In response to the BRICS countries' attempts to sideline the dollar in international trade, Waller stated that stablecoins will neutralize these efforts. He pointed out that these digital assets could reduce the effectiveness of regulations aimed at preventing dollarization.
According to Chainalysis's report in October, the market share of stablecoin transactions on US-based exchanges is expected to fall below 40% in 2024, while transactions on foreign exchanges are projected to rise to 60%.
The GENIUS stablecoin bill introduced by US Senator Bill Hagerty on February 4 aims to create a regulatory framework for US-based crypto assets with high market values. The bill proposes that tokens exceeding $10 billion be regulated by the Fed, while those below that threshold be overseen by states.
With the increase in bot transactions in 2024, the transaction volume of stablecoins is expected to reach $27.6 trillion, surpassing the total transaction volume of Visa and Mastercard by 7.7%.