Fed backs stablecoins as BoE says tokenized deposits may win in 5 years

Federal Reserve Governor Christopher Waller defended stablecoins during a panel at the 32nd Dubrovnik Economics Conference, placing the tokens in the payments debate rather than the wider crypto risk debate.

Waller said, “I’ve always just looked at stablecoins as a payment instrument; there’s nothing evil about it, nothing dangerous about it.” He added that stablecoins bring more competition into payments and can lower costs, as reported by Reuters.

Greene says tokenized deposits may overtake stablecoins

Bank of England policymaker Megan Greene gave a different view at the same event. She said tokenized deposits, which are digital versions of bank deposits, may become more useful than stablecoins.

Greene said, “I think tokenized deposits are probably going to take over from stablecoins and five years from now, I suspect we might wonder why we were talking about stablecoins.” She said banks may invest more in digital deposits once they see pressure on deposits and fee income.

Dollar stablecoins add a policy debate

Waller also said countries that use more dollar-backed stablecoins may import U.S. monetary conditions. That view places stablecoins inside the debate over dollar reach, payment competition, and central bank control.

Greene raised concerns that stablecoins are not always stable, face regulatory questions, and can support illicit use. She also said stablecoins can pull deposits away from banks and weaken how monetary policy moves through the banking system.

The split shows how central banks now view private digital money from different angles. Some officials see faster payments and dollar demand. Others see deposit loss, weak controls, and pressure on local policy tools.

CLARITY Act fight keeps stablecoins in Congress

The remarks came as U.S. lawmakers continue to debate the CLARITY Act, a digital asset market structure bill. Related crypto.news coverage said the Senate Banking Committee advanced the bill 15-9 on May 14 after months of debate.

Stablecoin rewards remain one of the main disputes. Banking groups have warned that yield-like rewards on stablecoin balances could move deposits away from traditional lenders. Crypto firms argue that regulated digital asset products should be allowed to offer customer benefits.

Senator Cynthia Lummis has urged Congress to move fast. She warned that if the bill fails, the next real window for digital asset legislation may not arrive until 2030.

If the United States doesn’t establish the global standard for digital asset regulation, someone else will.

China is not waiting.

The Clarity Act is how America leads — and how we ensure our adversaries don’t write the rules of the next financial era.

— Senator Cynthia Lummis (@SenLummis) May 30, 2026

Lummis also linked the bill to U.S. financial leadership. In an X post, she said, “America built the dollar-dominated financial system that has anchored global stability for a century. The Clarity Act ensures we build the next one.”