Fed says stablecoins could strengthen the dollar’s role in global finance
The Federal Reserve said at the fifth conference on the international role of the U.S. dollar that stablecoins may reinforce the dollar’s position in the global financial system. Fed Governor Christopher Waller said roughly 97% to 99% of fiat-backed stablecoins are pegged to the U.S. dollar, and that technological change is reshaping how households and businesses interact with the currency. The event was jointly hosted last month in Washington by the Federal Reserve Board and the Federal Reserve Bank of New York, with discussion centered on how stablecoins and cross-border payments innovation could affect the international monetary system. In a keynote speech, Cornell University professor Eswar Prasad said the world is moving into a new phase of competition between public and private forms of money, while central bank money is still expected to remain the main settlement asset and store of value.
