Federal Reserve officials said stablecoins and tokenized assets are opening new channels for dollar intermediation, while warning that AI is intensifying digital risks across financial infrastructure.
Federal Reserve Governor Christopher Waller said stablecoins and tokenized assets could influence the dollar’s international role by creating new channels for dollar intermediation alongside banks and payment systems. Speaking at the Federal Reserve Board’s fifth Conference on the International Roles of the U.S. Dollar, Waller said the currency’s global dominance still rests on the strength of the U.S. economy, deep and liquid financial markets, and trust in U.S. institutions, even as digital innovation reshapes how dollar-denominated claims are held, transferred and settled. The remarks reinforced the conference’s focus on how stablecoins, tokenized finance and alternative payment rails could affect cross-border payments, foreign exchange activity, capital flows and demand for U.S. safe assets. Vice Chair Michelle Bowman also warned that artificial intelligence is amplifying digital vulnerabilities in financial infrastructure, adding a risk dimension to the debate over how new technologies may alter the global dollar system.