Federal Reserve Governor Waller Optimistic About Stablecoin Market Prospects, Calls DeFi a Necessary Evolution of Payment Systems
Federal Reserve Governor Christopher Waller emphasized the potential of stablecoins in modernizing payment systems at a recent blockchain seminar in Wyoming.
Waller stated that stablecoins, as crypto assets pegged to fiat currency, are a driving force in the fintech revolution, helping to maintain and expand the dollar's position internationally while improving retail and cross-border payments.
Additionally, the stablecoin regulations under the recently signed "GENIUS Act" by the U.S. President have also facilitated the development potential of stablecoins.
Waller further emphasized that blockchain technology is a complement to traditional payment systems rather than a replacement. He explained the buying and selling processes in traditional payment transactions and the issuance of receipts, noting that these processes are equally applicable in the cryptocurrency world.
He also stressed that technologies such as smart contracts, asset tokenization, and distributed ledgers in the decentralized finance (DeFi) world are merely new means of transferring goods and recording transactions, and there is no need for concern.
It is noteworthy that the current stablecoin market size is $280 billion, accounting for 7% of the total cryptocurrency market capitalization. Tether (USDT) leads with a 60% market share and a circulation of $167 billion, while Circle ranks second with a 24% market share and $67.5 billion in USDC circulation.
Despite a recent influx of new participants in the stablecoin market, such as Ripple's RLUSD and World Liberty Finance's USD1, the market is still dominated by leading projects.
Waller's remarks continue the trend of policy shifts by the Federal Reserve in recent years. As early as April of this year, the agency withdrew its 2022 guidelines limiting banks' cryptocurrency operations and clearly signaled a shift in regulatory attitude.
Meanwhile, the Federal Reserve is actively conducting research on the tokenization of real-world assets, smart contracts, and artificial intelligence to understand trends and support private firms using banking infrastructure.
In summary, Waller's speech not only marks the Federal Reserve's positive attitude towards cryptocurrency and fintech innovation but also provides new opportunities for the integration of the traditional financial sector and the digital asset ecosystem.
