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Federal Reserve Speeches·

Waller, Welcoming Remarks on the International Role of the U.S. Dollar

  • The fifth Conference on the International Roles of the U.S. Dollar focused on the implications of financial innovations, specifically digital assets like stablecoins.
  • Traditional drivers of the dollar's role, such as economic size & trust in U.S. institutions, remain critical while the surrounding environment changes rapidly.
  • Technological innovation is altering interactions with dollars through new asset types & changes to payment rails involving distributed ledger technologies.
  • Stablecoins & tokenized assets are creating new channels for global dollar intermediation that operate alongside or with traditional banking systems.
  • The private sector is expanding access to dollar-denominated assets & innovating in financial services, creating both complements to & competition with the traditional financial sector.
  • Research themes include the transformation of payment systems & foreign exchange markets via stablecoins & blockchain infrastructure.
  • Other studies examine spillovers from stablecoin adoption into broader financial markets, testing effects on exchange rates & cross-border capital movements.
  • A major theme involves the relationship between stablecoins & U.S. safe assets, exploring how dollar-backed stablecoins may link global liquidity demand to U.S. Treasury markets.
  • Final papers revisit classic international finance questions to assess whether stablecoins reinforce the dollar's global role or introduce new tensions to the monetary system.
  • The conference views expressed are those of the speaker & not necessarily those of the Federal Reserve Board or the Federal Open Market Committee.