Stablecoins and Competition in Payments

By Michael S. Derby
NEW YORK (Reuters) – Federal Reserve Governor Christopher Waller stated on Thursday that stablecoins will enhance competition in the payments system, which he views positively.

Waller noted that the emergence of stablecoins is likely to reduce costs and increase the speed of various payment types. He expressed his goal as a free-market capitalist economist: to foster competition in the payments sector to lower costs for households, consumers, and businesses.

Additionally, he mentioned that stablecoins could lead to a decrease in the demand for U.S. paper currency while simultaneously increasing the overall demand for the dollar.