Fed Governor Waller: “Nothing to Fear” from Crypto Payments

US Federal Reserve Governor Christopher Waller has reassured both policymakers and the private banking sector that crypto payments and decentralized finance (DeFi) are not threats to the financial system but rather extensions of existing technology. 

Speaking at the Wyoming Blockchain Symposium 2025 on Wednesday, Waller said there is “nothing to be afraid of” when it comes to integrating smart contracts, tokenization, and distributed ledgers into everyday transactions.

“There is nothing scary about this just because it occurs in the decentralized finance world,” Waller emphasized. “This is simply new technology to transfer objects and record transactions.”

His remarks come as the Fed gradually softens its stance toward digital assets. Earlier this year, it rolled back restrictive guidance from 2022 that discouraged banks from engaging with crypto and stablecoins. More recently, the Fed scrapped its “novel activities supervision program” that focused on crypto oversight, signaling a shift toward mainstream acceptance.

Crypto Transactions Compared to Everyday Payments

In his speech, Waller likened crypto transactions to traditional debit card purchases, describing them as different methods serving the same purpose. He noted that using a stablecoin to buy a memecoin mirrors the experience of tapping a debit card to buy an apple at a grocery store.

“I buy a meme coin and use a stablecoin as the means of payment. The transaction takes place using a smart contract. Finally, the transaction is recorded on a distributed ledger,” he explained.

Waller’s straightforward comparison was designed to ease lingering skepticism about crypto’s complexity, underlining that blockchain-based payments function as natural extensions of familiar financial processes.

Stablecoins Seen as Boost for the Dollar

Waller also praised the recently signed Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, calling it an “important step” toward stablecoin adoption. He argued that stablecoins could help strengthen the dollar’s international role, particularly in regions struggling with inflation or limited access to US currency.

According to US Treasury estimates, the stablecoin market — currently valued at $280 billion — could swell to $2 trillion by 2028, marking a 615% increase. The growth would likely accelerate demand for US Treasury bills, further binding the sector to the American financial system.

At present, Tether’s USDT leads the stablecoin market with a $167 billion market cap, followed by Circle’s USDC at $67.5 billion, according to CoinGecko.