Federal Reserve Governor Christopher Waller voiced concern about the risks from emerging payment technologies, especially non-banks and stablecoins.
Details: Speaking at the Summer Workshop on Money, Banking, Payments and Finance in Washington, D.C., Waller said vulnerabilities such as run risk, excessive leverage, and bubbly valuations could result in big economic losses. He added that the conference would cover the risk of runs on banks, non-banks, and stablecoins and feature sessions on decentralized finance, crypto exchange tokens, and central bank digital currencies.
ICBA View: ICBA shares concerns about stablecoins disrupting financial stability and has significant concerns about the use of stablecoins for illicit activities. ICBA President and CEO Rebeca Romero Rainey wrote in a recent LinkedIn post that ICBA is engaged with lawmakers to ensure strong oversight over stablecoin issuers.