Federal Reserve Board Governor Christopher Waller was speaking on stablecoins and such.
Here is the full text if you are interested:
Christoper Waller
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A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging its price to an underlying asset, such as a fiat currency (e.g., USD), a commodity (e.g., gold), or an algorithmic mechanism. The goal is to reduce the price volatility seen in traditional cryptocurrencies like Bitcoin.
Types of Stablecoins:
- Fiat-backed – Pegged 1:1 to a currency like USD (e.g., USDT, USDC).
- Crypto-backed – Collateralized by other cryptocurrencies (e.g., DAI).
- Algorithmic – Uses smart contracts and supply adjustments to maintain stability (e.g., UST before it collapsed).
Use Cases:
- Facilitating crypto trading (reducing exposure to volatility).
- Cross-border payments and remittances.
- DeFi (decentralized finance) applications.