US and UK Central Bankers Diverge on Stablecoin Regulation

Federal Reserve Governor Christopher Waller signaled that the rising use of dollar-backed stablecoins could extend the United States’ monetary influence, potentially importing US monetary conditions into other economies as these tokens gain traction globally.

US and UK Central Bankers Diverge on Stablecoin Regulation. Federal Reserve Governor Christopher Waller signaled that the rising use of dollar-backed stablecoins could extend the United States’ monetary influence, potentially importing US monetary conditions into other economies as these tokens gain traction globally. Speaking at the 32nd Dubrovnik Economics Conference, Waller framed stablecoins as a payment instrument rather than a threat, suggesting they intensify competition in the payments space rather than undermine it. In the same Dubrovnik event, Megan Greene, a Bank of England policymaker and fellow panelist on “Stablecoins and monetary policy,” offered a more apprehensive take. Greene argued that stablecoins could fade from view within a few years, while she predicted tokenized deposits might become the dominant pillar of the dig...