FED Member Waller Made Warm Statements About the Cryptocurrency Industry!

FED member Christopher Waller shared his views on the evolving landscape of decentralized finance (DeFi) and stablecoins, expressing both their potential benefits and associated risks.

In a series of statements, Waller acknowledged the complementary nature of technological innovations in DeFi to traditional finance and said appropriate regulations are needed to safely leverage these innovations.

Waller noted that some services emerging through DeFi cannot be replicated by traditional finance, but the technological advances from DeFi are largely complementary. These innovations have the potential to improve centralized financial markets and increase the value provided by financial intermediaries, according to Waller.

“DeFi can bring efficiency improvements, but the value of traditional financial intermediaries and centralized financial markets remains significant,” Waller said. While some experts predict that DeFi will replace traditional finance, others see it as an extension that expands certain aspects of the current financial system.

Waller also talked about stablecoins, calling them an important innovation in the DeFi space. stablecoins crypto para He explained that it was created to provide a “safe” asset that is stable and easy to trade in its universe. “Almost all stablecoins are pegged one-to-one to the US dollar,” he said.

He also outlined the potential of stablecoins as payment solutions that could reduce global transaction costs by minimizing the need for traditional payment intermediaries. “Since stablecoins are digital currencies, they can reduce the need for payment intermediaries and thus reduce global payment costs,” Waller said, but cautioned that the security of these assets is not yet guaranteed.

Waller noted that stablecoins could be useful as means of payment and safe assets on a variety of new trading platforms if appropriate firewalls are created. However, he also underlined the need to address risks such as operational vulnerabilities and the potential use of stablecoins in illicit financing.

*This is not investment advice.