Federal Reserve Governor Chris Waller stated that the technologies behind cryptocurrencies are not frightening and actually present new opportunities for the financial system. Emphasizing the need to support innovation, Waller said the Fed may not directly adopt these tools but will continue to explore them.
Speaking at a conference in Jackson Hole, Waller described smart contracts, tokenization, and distributed ledger technologies as simply “tools.” He underlined that if these innovations provide more efficient and useful methods, their adoption should be natural. A long-time supporter of stablecoins and digital innovation, Waller’s remarks once again clarified his stance on crypto.
His comments aligned with the Fed’s July meeting minutes, which highlighted that stablecoins could improve efficiency in payment systems and boost demand for U.S. Treasuries. However, the minutes also stressed the need to consider potential risks to banking, financial stability, and monetary policy.
In recent months, the Fed’s stance toward crypto has noticeably softened. Guidance discouraging banks from engaging with digital assets has been rolled back, and the “reputational risk” classification has been removed. Fed Vice Chair Michelle Bowman also urged banks this week to be more open to innovation, signaling the central bank’s shift toward a more constructive outlook on the sector.
