Federal Reserve Governor Chris Waller recently delivered a strong endorsement of digital asset innovations, arguing that crypto and related technologies like smart contracts and decentralized finance (DeFi) are nothing to be feared. Speaking at blockchain events, Waller addressed lingering skepticism toward modernization in payments, urging that new technology should not be dismissed simply because it operates outside traditional banking infrastructure. According to Waller, technological evolution has long defined improvements in payment systems, and digital assets are the latest step in that progress.
Waller asserted that using crypto should not be seen as risky or dangerous—it’s simply new technology for transferring assets and recording transactions. He emphasized that tools such as smart contracts, tokenization, and distributed ledgers are fundamentally similar to established payment methods and can provide tangible benefits in everyday transactions.
He pointed out the complementary roles of private sector innovation and the Federal Reserve in advancing the U.S. payment system, crediting the private sector for leading much of the recent evolution. Waller believes stablecoins, a type of digital asset pegged to traditional currencies, exemplify how market-driven innovation can enhance the global reach of the U.S. dollar, particularly in countries grappling with high inflation or limited access to affordable banking services.
Highlighting new regulatory frameworks like the GENIUS Act, Waller also suggested that stablecoins could reinforce the dollar’s role internationally and improve both retail and cross-border payments. He argued for the Federal Reserve to remain open-minded and proactive in embracing these technological advancements to modernize services and support ongoing innovation in the payments space.
Waller’s remarks reflect a broader trend among U.S. policymakers advocating for regulatory clarity and a constructive approach to digital asset adoption, positioning crypto not as a threat, but as an opportunity for the U.S. financial system to evolve and remain competitive in the digital age.