Main highlights
- In his speech, US Federal Reserve President Christopher Waller said stablecoins could increase competition in the world of digital payments.
- He emphasized the nature of stablecoins to strengthen payment systems by making financial settlements faster and cheaper.
- After the approval of the GENIUS Act, many payment giants and banking institutions are rushing to integrate stablecoins
During a panel discussion on the future of central banks and payments, Federal Reserve President Christopher Waller called stablecoins “an attractive new means of payment” that is expected to bring competition to the payments space.
Right now: 🇺🇸 Federal Reserve Board member Christopher Waller says crypto stablecoins will bring competition to payments. pic.twitter.com/PueTd1IyN4
— Watcher.Guru (@WatcherGuru) November 6, 2025
In his statement, he directly highlighted an ongoing trend among large financial institutions and payment giants who are rushing to integrate stablecoin innovations into their existing financial infrastructure. He said this digital currency pegged to the US dollar would enhance competition in a healthy way within the payment system.
Federal Reserve Board Chairman Christopher Waller Highlights Stablecoin Benefits
This is not the first time Federal Reserve President Christopher Waller has expressed his views on stablecoins. He issued a similar statement in July, highlighting the growing importance of stablecoins in digital payment systems. According to CoinMarketCap, the stablecoin market currently has a market capitalization of $313.58 billion.
He said these digital currencies will make digital payments cheaper and faster. he said:As a free market capitalist economist, my goal is to lower costs for households, consumers, and businesses through payments competition. that's it. “
“If stablecoins provide a low-cost alternative for consumers and businesses, I'm all for it. “We are already seeing this dynamic developing outside the United States, making USD stablecoins an attractive option in countries where access to dollar banking services is expensive or limited,” he said.
Waller has been a vocal advocate of stablecoins for years. He explains that stablecoins can introduce greater efficiency, speed and choice to financial transactions. This is similar to the competition between private banks today.
In his view, stablecoins function like traditional bank money, but as synthetic dollars powered by blockchain technology. This technology infrastructure will facilitate international payments and reduce fees, especially in regions with outdated financial infrastructure.
Global adoption of stablecoins increases
Many countries around the world are rapidly integrating stablecoins into their financial systems. In Latin America, Argentina is a prime example of this trend. Amid the country's devastating financial crisis, more than 60% of cryptocurrency users in the country swapped their cash for stablecoins such as USDT to preserve their savings. This strategy helps cryptocurrency investors use cryptocurrencies as a hedge against currency devaluation.
Similarly, Brazil's Central Bank is developing regulations to formally classify stablecoins as assets and to easily incorporate them into the traditional financial system. The main objective of this development is to utilize this innovation in particular for remittances, which is an important source of income for many families.
Financial institutions and payment giants adopt stablecoins
Major banks and payment giants are also rushing to introduce stablecoins to strengthen global payment systems. PayPal, one of the largest payment applications, announced the launch of its own USD-pegged stablecoin PYUSD. By 2025, it was used in the first major corporate payments to test its practicality.
Users of platforms like Venmo and Cash App will now be able to hold and send PYUSD, tying these payments directly to their everyday expenses. This integration significantly reduces fees and speeds up transfers, especially for cross-border payments.
Visa, a major payment network, is also developing a platform that allows banks to issue their own stablecoins and settle transactions on blockchains such as Ethereum and Solana. Its pilot program has shown that cross-border fees can be reduced up to a significant amount.
In the banking sector, JPMorgan's platform Kinexys uses stablecoins to offer customers 24-hour tokenized payment services. This reduces the risk and time associated with foreign exchange settlements. BNY Mellon is also expanding its role by providing custody services for holding reserve assets backing stablecoins.
Bank of America and other major banks are also planning to launch their own stablecoins following the approval of the GENIUS Act, the first law for the stablecoin market.
