Fed Governor Waller: Dollar Tokenization Is Becoming a New Cross-Border Channel

CoinFeed June 23 news, Federal Reserve Governor Christopher J. Waller said in his opening remarks at the Fifth Conference on the International Roles of the U.S. Dollar that he will focus on the impact of stablecoins and tokenized assets on the international role of the dollar. Waller stated that dollar dominance remains based on the size of the U.S. economy, the depth of financial markets, and institutional trust, but distributed ledgers and asset tokenization are creating new dollar intermediation channels, operating in parallel with traditional banking and payment systems, causing the international use of the dollar to evolve. He pointed out that the private sector is rapidly expanding the availability of dollar-denominated assets and exploring business models that leverage new technologies. Fed Vice Chair Michelle Bowman also warned that artificial intelligence applications are amplifying the digital vulnerabilities of financial infrastructure.