On August 19, Fed Governor Christopher Waller delivered remarks at a blockchain symposium, emphasizing the ongoing evolution of payment systems driven by advances in computing, data processing, and distributed networks. Waller described the current landscape as a “technology-driven revolution,” noting the proliferation of digital wallets, AI, mobile apps, instant payments, and stablecoins in payment services.
Waller underscored the historical roles of both the private and public sectors in payments innovation, but stressed the private sector is better positioned to allocate resources and assume risk when pursuing technological innovation. Waller discussed developments in the stablecoin market and recent legislative efforts to establish a regulatory framework for payment stablecoins.
Waller highlighted AI’s role in payment systems, particularly for fraud detection and compliance functions, touting the financial services industry as a pioneer in adopting AI and large language models. Waller noted how the Fed is studying tokenization and smart contracts and concluded by emphasizing the importance of continued collaboration between regulators and industry as digital assets and traditional financial systems become increasingly interwoven.
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