Federal Reserve Governor Christopher Waller stated that just because DeFi operates outside traditional banking infrastructure does not mean it is "frightening."
At the 2025 Wyoming Blockchain Symposium, Waller defined blockchain-based transactions as "a natural technological evolution," rather than a "disruptive threat."
He compared DeFi operations to traditional shopping, pointing out that "buying cryptocurrency with stablecoins through smart contracts" is fundamentally identical to "shopping with a debit card at a grocery store."
Waller said: "There is nothing to fear in using smart contracts, tokenization, or distributed ledgers in everyday transactions."
This Federal Reserve governor positioned DeFi technology as "a new tool for transferring assets and recording transactions," emphasizing its functionality is highly similar to existing payment methods.
Waller argued that innovation led by the private sector should be the core driving force behind the development of payment systems and viewed stablecoins as "the latest example of market-driven solutions."
Additionally, he believes the development of stablecoins has expanded the use of the dollar globally, especially in countries with high inflation and a lack of inclusive financial services, where the impact is even more significant.
Waller even emphasized that stablecoins possess the characteristics of "24/7 uninterrupted service" and "fast transfers," which are expected to "maintain and expand the international status of the dollar" and improve the efficiency of retail and cross-border payments.
This speech comes after the passage of the (GENIUS Act), which is the first core cryptocurrency legislation signed and effective in the U.S., which Waller called "an important step for the payment stablecoin market."
Waller's remarks in Wyoming are a continuation of his stance to "support innovation" throughout 2024.
Last October, at the Vienna Macroeconomics Symposium, Waller pointed out that DeFi is more likely to "complement traditional finance" rather than "completely replace traditional finance."
He acknowledged the potential of DeFi in "simplifying financial activities," while also emphasizing that for most people, financial intermediaries still play an important role.
In November 2024, at the annual meeting of the bill exchange, Waller advocated for cryptocurrency and payment sectors to adopt market-driven solutions and emphasized the advantages of private sector-driven innovation through competition.
He believes that profit motives and market competition allow private enterprises to make better choices in technology investment decisions and consumer demand assessments.
Waller also mentioned that the Federal Reserve is conducting technical research on tokenization, smart contracts, and artificial intelligence in the payment sector. This initiative not only helps the Federal Reserve fulfill its responsibilities as a payment system operator but also provides private enterprises with the space to utilize central bank infrastructure.
Waller stated that payment systems are undergoing a "technology-driven revolution" propelled by advances in computing power, data processing, and distributed networks.