Federal Reserve Bank Governor Christopher Waller advocates for the regulation of stablecoins, emphasizing that clear guidelines will strengthen the US dollar's position as the world's reserve currency. In an interview with the Atlantic Council, Waller expressed that stablecoins could expand the dollar's global reach, enhancing its role in international trade and finance. He noted that effective regulation would ensure the stability and backing of stablecoins, which would facilitate their adoption in payment systems. Reports indicate that over 99% of stablecoin market shares are concentrated among a few entities, with Tether dominating the market. Waller argued that the emergence of stablecoins could complicate efforts by other nations, notably BRICS countries, to reduce reliance on the dollar. The conversation also touched upon new legislative efforts to establish a regulatory framework for stablecoins, reinforcing the Federal Reserve's role in governing high-cap tokens. The overall stablecoin market has seen significant growth, surpassing $200 billion, with continued adoption driven by various economic factors.

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