Federal Reserve Board Governor Waller: Stablecoins are an important innovation in DeFi and will reduce global payment costs

BlockBeats news, on October 19, Federal Reserve Board Governor Waller spoke at the Vienna Macroeconomics Seminar: Stablecoins are another important innovation in DeFi. Stablecoins were created in the crypto universe in the hope of providing a "safe" asset whose value is relatively stable and convenient for trading. Almost all stablecoins are pegged one-to-one to the US dollar. Stablecoins provide buyers and sellers with an opportunity to trade in a decentralized manner, and stablecoins are used as settlement tools.

Since stablecoins are actually digital currencies, they can reduce the need for payment intermediaries, thereby reducing global payment costs. But their security is not guaranteed. If appropriate guardrails can be established to minimize operational risks and mitigate other risks of stablecoins, such as their potential use in illegal finance, then stablecoins may bring benefits in payments and serve as safe assets on various new trading platforms. (Jinshi)