Fed Governor Reassures Banks: Nothing to Fear from Crypto Payments

Federal Reserve Governor Christopher Waller reassured bankers and tech innovators this week, saying that crypto payments are not a threat but rather a natural next step in the evolution of financial systems. Speaking at the Wyoming Blockchain Symposium 2025, he urged banks to embrace digital assets as a standard part of payment methods.

Crypto Payments as a Natural Progression Waller highlighted that technology has always reshaped how people pay—from the early days of credit cards to today’s mobile wallets. Now, it’s the turn of stablecoins, which, thanks to their peg to the U.S. dollar, enable fast and low-cost transactions at any time of day. He emphasized their usefulness in retail payments, international transfers, and in countries with unstable currencies. “Stablecoins can even strengthen the global position of the U.S. dollar,” Waller stressed, noting that they allow people to hold and spend dollars without direct access to U.S. banks.

Backing the New Law His remarks came shortly after the approval of the federal GENIUS Act, the first U.S. law providing a clear regulatory framework for stablecoin issuers. Waller argued that this legislation removes unnecessary uncertainty and gives companies and banks firmer ground to build upon. “Regulation should not be seen as a barrier but as the foundation for future growth,” he said.

Fed Exploring New Technologies Waller also confirmed that the Federal Reserve is actively studying tokenization, smart contracts, and artificial intelligence to enhance the speed and security of payment systems. These tools, he said, represent real progress that could soon be integrated into everyday financial networks, just like chip cards and mobile payments once were.

Bowman: Banks Shouldn’t Avoid Crypto Waller’s message was echoed by fellow Fed Governor Michelle Bowman, who warned banks not to shy away from crypto. She pointed out that the Fed has recently removed “reputational risk” from its supervisory guidelines, a term that once discouraged banks from offering crypto-related services. Bowman even proposed allowing Fed employees to hold small amounts of crypto. According to her, first-hand experience with digital assets would give regulators valuable insights into the markets they oversee.

Fed: Crypto Is Innovation, Not a Threat Together, Waller and Bowman’s remarks signaled that the Federal Reserve now views cryptocurrencies as a natural part of financial innovation. The message to banks is clear: if they continue to resist the trend, they risk being left behind in a world where technology is evolving faster than ever.

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