Federal Reserve Governor Paul Waller: Banks and non-bank institutions should be allowed to issue regulated stablecoins

On February 13, according to Bloomberg, the governor of the US Federal Reserve Board, Waller, said that stablecoins have the potential to maintain and expand the role of the US dollar internationally, although its rise and fall will depend on a solid business application case and a uniform system of rules. Speaking at a conference in San Francisco, Waller pointed out: The stablecoin market will benefit from a US regulatory and supervisory framework for stablecoin risks, which should directly, comprehensively and precisely address the risks of stablecoins. This framework should allow banks and non-bank institutions to issue regulated stablecoins, and should consider the impact of regulation on the payments sector, he said. Waller also mentioned that stablecoins face the risk of a run. Waller said: The emergence of stablecoin regulatory systems in different countries and regions may lead to regulatory conflicts at home and abroad. He also pointed out: This regulatory fragmentation may make it difficult for issuers of dollar stablecoins to operate globally. Waller mentioned that state regulators have played a key role in the development of the stablecoin market, and that multiple states are developing or finalizing new regulations. There is a risk of interstate regulatory conflicts, which may hinder the use of the same stablecoin in all states, thus reducing the scalability of stablecoins.