US and European central bankers on Monday set out rival arguments on stablecoins as Federal Reserve governor Christopher Waller endorsed the private sector cryptocurrencies while Bundesbank president Joachim Nagel warned against supporting “innovation for innovation’s sake alone”.
In two contrasting speeches at a conference in Frankfurt, Waller and Nagel highlighted a growing transatlantic rift among rate setters about digital tokens that track the value of fiat currencies and are a cornerstone of crypto trading.
The remarks came amid a push by US President Donald Trump’s administration for the widespread adoption of mostly dollar-backed stablecoins from private sector issuers. The drive has spooked officials in Europe, who are doubling down on the creation of a European Central Bank-backed digital euro.