Federal Reserve Governor Christopher Waller said Sunday that the spread of stablecoins beyond U.S. borders could extend the reach of U.S. monetary policy into countries that adopt the tokens.
Speaking at an event in Dubrovnik, Croatia, Waller described the effect of stablecoin adoption as similar to a fixed exchange rate arrangement. In his words:
"Countries that adopt it, it's like a fixed exchange rate system," Waller said. "You are going to import US monetary costs, so it's broadening the reach of US monetary policy in countries that use more stablecoins."
Waller's comments on Sunday echo remarks he made in a February 2025 speech, where he said he supported stablecoins on the grounds that they are likely to reinforce the U.S. dollar's status as a reserve currency - provided that a clear regulatory framework is established. The governor reiterated that stablecoins, by design, aim to maintain a steady value; issuers typically promise to hold liquid assets, such as U.S. dollars or Treasury bills, in an amount equal to tokens issued.
At the same time, Waller voiced skepticism about central bank digital currencies. He argued there is no imperative that "requires a CBDC and only a CBDC to fix" and characterized them as "a solution in search of a problem." He added that "almost every major central bank in the world has just stopped" pushing for CBDCs because "they just can't find a reason for this."
In contrast to the broader pullback Waller described among central banks, the European Central Bank has publicly outlined plans for a digital euro. The ECB intends to conduct a pilot phase as early as next year and aims for a full rollout in 2029. The stated objective of the project is to safeguard Europe's monetary sovereignty amid concerns about reliance on U.S. payment firms like Visa Inc Class A (NYSE:V) and Mastercard Inc (NYSE:MA), and in light of the emergence of dollar-pegged stablecoins.
Taken together, Waller's remarks draw attention to how private digital tokens and public digital currencies are reshaping policy debates. His statements link the technical design and adoption patterns of stablecoins to tangible considerations for monetary authorities, while his critique of CBDCs highlights ongoing uncertainty among central banks about their necessity.