On October 18, Federal Reserve Bank Governor Christopher Waller expressed that well-regulated stablecoins could enhance the financial system during a talk at the Institute of Advanced Studies. He noted that stablecoins might lower payment intermediary needs, consequently reducing payment costs worldwide. However, Waller emphasized that the safety of stablecoins is not guaranteed. He stated that if adequate safeguards can be implemented to mitigate risks, such as the potential for illicit finance, stablecoins could serve as beneficial payment tools and safe assets on various trading platforms. Waller also mentioned that decentralized finance could complement traditional finance, potentially extending the hegemony of the dollar. Furthermore, US lawmakers are pushing for regulations on stablecoins, with recent bipartisan efforts to establish a more structured framework. Despite these advancements, a report from Chainalysis indicated that stablecoin transactions on US-regulated exchanges have decreased, while those on offshore exchanges have increased significantly in 2024.

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