US Federal Reserve Governor Christopher Waller used the Sibos 2025 stage to highlight the Fed’s growing interest in new technologies shaping the financial system.

He disclosed that the central bank is conducting hands-on research into tokenization, smart contracts, and artificial intelligence in the payments sector.

According to Waller, this work is designed to understand how private innovators deploy these tools and determine where infrastructure upgrades to the Fed’s infrastructure may be possible.

Focus on stablecoins

In his remarks, Waller urged regulators and industry participants to view stablecoins as a continuation of America’s long tradition of payment innovation.

He argued that stablecoins should be recognized as another legitimate payment option, as consumers once gained choices through banks, card networks, and fintech firms.

According to Wallerm, these digital assets represent “a new form of private money” that can coexist with existing payment instruments if supported by robust safeguards.

By positioning stablecoins this way, Waller tied their adoption to the US culture of choice and competition. He said:

“I may choose one provider if I want to park my emergency fund in a high-yield savings account, and I may choose different providers if I want to process a cross-border payment, pay someone with a QR code, or buy a crypto-asset. A choice of providers also encourages competition on cost, speed, efficiency, and user experience.”

Waller noted that individuals often prioritize speed and convenience, while businesses focus on liquidity management and settlement efficiency. He said that introducing stablecoins into this mix could push incumbents to lower costs and improve service quality.

Waller emphasized that the competitive effects of blockchain-based solutions would pressure traditional players to innovate and deliver tangible products, especially

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Author: Oluwapelumi Adejumo