US, UK central bankers offer contrary views on stablecoins
Fed governor Christopher Waller said dollar-backed stablecoins could strengthen the global reach of US monetary policy by causing other countries to effectively import US financial conditions. He described stablecoins as a competitive payments tool, not a threat. Bank of England policymaker Megan Greene offered the opposite view, arguing stablecoins may be overtaken by tokenized deposits within a few years and that central bank digital currencies, stablecoins, and tokenized deposits are in a race, with tokenized deposits most likely to win. Waller also said interest in CBDCs has faded among many central banks, while Greene disagreed. Separately, US crypto market-structure legislation remains stalled over stablecoin yield rules and opposition from banks, with lawmakers facing time pressure before the next election cycle.
