Speaking at the Wyoming Blockchain Symposium on Wednesday, central bank Governor Christopher Waller said, \u201cthe payment system is experiencing what I have called a \u2018technology-driven revolution\u2019.\u201d<\/p>\n
He added<\/a> that this includes instant payments, digital wallets, mobile payment apps, stablecoins, and other digital assets, and AI. He specifically cited stablecoins, or fiat-pegged crypto assets, as the driver of this fintech revolution.<\/p>\n \u201cI believe that stablecoins have the potential to maintain and extend the role of the dollar internationally. Stablecoins also have the potential to improve retail and cross-border payments.\u201d<\/p>\n Waller emphasized that blockchain technology complements rather than replaces traditional payment systems, noting many stablecoin operations still rely on legacy payment services.<\/p>\n JUST IN: Fed Governor Christopher Waller calls for the U.S. to embrace AI and stablecoins to modernize its payment systems \u2013 aiming for faster, cheaper, and more secure transactions.<\/p>\n He stresses that regulators must adapt or risk falling behind.<\/p>\n FOMO IS HERE pic.twitter.com\/Wy3wfayOif<\/a><\/p>\n \u2014 Real World Asset Watchlist (@RWAwatchlist_) August 20, 2025<\/a><\/p>\n\n He explained how traditional payment transactions with something being bought and paid for, and technology facilitating the transaction and issuing a receipt. \u201cThe same process applies to the crypto world,\u201d he said before adding:<\/p>\n \u201cThere is nothing scary about this, just because it occurs in the decentralized finance or DeFi world \u2014 this is simply new technology to transfer objects and record transactions.\u201d<\/p>\n Waller added that there was also nothing to be afraid of when thinking about using smart contracts, tokenization, or distributed ledgers in everyday transactions.<\/p>\n The central banker echoed the SEC Chair\u2019s recent comments<\/a> praising the recently signed GENIUS stablecoin bill, calling it an important step that could help stablecoins reach their full potential.<\/p>\n \u201cThis was an important step for the payment stablecoin market and could help stablecoins reach their full potential.\u201d<\/p>\n The speech also revealed the Fed is actively conducting technical research on real-world asset tokenization, smart contracts, and AI to understand trends and support private firms using banking infrastructure.<\/p>\n \u201cIt is my belief that the Federal Reserve could benefit from further engagement with innovators in industry, particularly as there is increased convergence between the traditional financial sector and the digital asset ecosystem.\u201d<\/p>\n Christopher Waller\u2019s comments reflect the central bank\u2019s partial pivot toward embracing crypto, following April\u2019s withdrawal of 2022 guidance that deterred banks from crypto activities.<\/p>\n The stablecoin market is currently valued at around $280 billion, which represents around 7% of the total crypto market capitalization.<\/p>\n Tether<\/a> still commands the lion\u2019s share of that market with 60% and a record $167 billion USDT in circulation.<\/p>\n Circle remains second with 24% market share and $67.5 billion USDC in circulation, and Ethens USDe has flipped Maker\u2019s USDS for third place with a 4% market share.<\/p>\n There have been a lot of new entrants to the crowded stable market recently, including Ripple<\/a> (RLUSD) and World Liberty Finance (USD1), but these are minnows compared to the market leaders.<\/p>\n The post Fed Governor Touts DeFi, Stablecoins, and RWA Tokenization in Pro-Crypto Speech<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Speaking at the Wyoming Blockchain Symposium on Wednesday, central bank Governor Christopher Waller said, \u201cthe payment system is experiencing what I have called a \u2018technology-driven revolution\u2019.\u201d He added that this includes instant payments, digital wallets, mobile payment apps, stablecoins, and other digital assets, and AI. He specifically cited stablecoins, or fiat-pegged crypto assets, as the […]<\/p>\n","protected":false},"author":0,"featured_media":90087,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-90086","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/90086"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=90086"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/90086\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/90087"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=90086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=90086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=90086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Nothing Scary About DeFi<\/h2>\n
Stablecoin Ecosystem Outlook<\/h2>\n