Christopher Waller, a Governor of the US Federal Reserve, assured his colleagues and the banking sector that there’s “nothing to fear” regarding crypto payments, which operate outside conventional banking.
“There’s nothing frightening about this merely due to its occurrence in the decentralized finance (DeFi) space — it’s just a new technology for transferring items and recording transactions,” he stated during his speech at the Wyoming Blockchain Symposium 2025 on Wednesday.
Waller emphasized that utilizing innovative technology to develop new payment services isn’t a “new narrative,” urging policymakers and the banking sector to collaborate on crypto payment infrastructure. “There’s no reason to shy away from employing smart contracts, tokenization, or distributed ledgers in daily transactions.”
Source: Sergii Gerasymovych
Waller’s remarks indicate the Fed’s gradual shift toward embracing crypto and its prospective role in the US payment system. In April, the Fed rescinded guidance from 2022 that previously discouraged banks from engaging in crypto and stablecoin activities.
Last week, the Fed concluded its risk-focused “novel activities supervision program” monitoring crypto-related operations, while Michelle Bowman, the Fed vice chair for Supervision, suggested on Tuesday that staff should be permitted to hold small amounts of crypto to enhance their understanding of the technology.
Waller’s favorable stance on crypto might soon carry more influence, as he is viewed as a leading candidate to succeed Jerome Powell as the Fed chair. Powell’s term concludes in May 2026 and can only be extended with renomination by President Donald Trump and Senate confirmation. However, it’s reported that Trump is urging Powell to resign.
Comparing memecoin purchases with crypto to buying apples with fiat: Waller
Waller likened DeFi transactions to regular debit card purchases, equating the use of stablecoins for acquiring a memecoin to tapping a debit card at a grocery store for an apple.
“I can visit a grocery store, purchase an apple, and pay for it using a digital dollar in my checking account. I tap my debit card on a card reader to complete the transaction. Ultimately, the machine generates a receipt, which serves as the record of the transaction. The same process applies in the crypto realm.”
“I buy a memecoin using a stablecoin as payment. The transaction executes via a smart contract, and in the end, it’s recorded on a distributed ledger.”
GENIUS bill seen as an “important step” towards stablecoin adoption
The recent signing of the Guiding and Establishing National Innovation for US Stablecoins Act is viewed by Waller as an “important step” for the adoption of stablecoins, suggesting it could enable them to “reach their full potential.”
Related: US Treasury invites public comment on GENIUS stablecoin bill
He mentioned that stablecoins could help sustain and enhance the dollar’s international role — particularly in countries experiencing high inflation or with limited access to physical dollars — while also streamlining retail and cross-border transactions.
Stablecoin market projected to grow by 615% by 2028
Currently valued at $280 billion, the stablecoin market is estimated by the US Treasury to reach $2 trillion by 2028.
This projection is supported by the department’s statement indicating that a regulatory framework for stablecoins could swiftly increase demand for US Treasury bills.
Currently, Tether (USDT) and Circle’s USDC dominate the stablecoin market with market caps of $167 billion and $67.5 billion respectively, according to CoinGecko data.
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