Fed’s Waller Says Stablecoins Broaden US Monetary Policy Reach

Federal Reserve Governor Christopher Waller said on May 31, 2026, that global stablecoin adoption is amplifying the reach of US monetary policy, likening it to a fixed exchange rate system. “You are going to import US monetary costs,” Waller said at an event in Dubrovnik, Croatia, adding that countries using more stablecoins effectively broaden US policy influence. He reiterated support for well-regulated stablecoins, echoing a February 2025 speech that they propagate the dollar’s reserve currency status. Waller criticized central bank digital currencies as a “solution in search of a problem,” claiming only the European Central Bank and China are actively pursuing them. “Almost every major central bank in the world has just stopped,” he said. ECB incoming Vice President Boris Vujcic corrected him, noting 21 euro-area central banks back the digital euro project, with a pilot phase starting as early as 2027 and full rollout by 2029. ECB President Christine Lagarde has warned that even euro-denominated stablecoins create risks to financial stability and monetary-policy transmission.