Federal Reserve member Christopher Waller believes that decentralized finance (DeFi) and stablecoins have the potential to enhance traditional finance but also come with risks. Waller sees DeFi as complementary to traditional finance, with the potential for efficiency improvements. He also highlights stablecoins as a significant innovation, providing a stable and easily tradable asset in the cryptocurrency space. Stablecoins could reduce global transaction costs and eliminate the need for traditional payment intermediaries, but their security and potential for illicit financing need to be addressed. Waller emphasizes the importance of appropriate regulations and firewalls to safely leverage these innovations.



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