## Stablecoins: Potential Benefits and Risks Federal Reserve Governor Christopher Waller recently discussed the potential benefits and risks associated with stablecoins, a type of cryptocurrency pegged to a fiat currency such as the US dollar. ### Potential Benefits According to Waller, stablecoins could significantly reduce the cost of global payments. Traditional cross-border payments often involve high fees and lengthy processing times. Stablecoins, however, offer a faster and more cost-effective alternative. ### Potential Risks Waller also highlighted the potential risks associated with stablecoins. He emphasized the need for appropriate regulations to mitigate security and illicit finance risks. Additionally, he noted that the financial disintermediation provided by stablecoins is still incomplete, with centralized exchanges still playing a significant role in the crypto sector. ### Conclusion Waller's remarks underscore the complex nature of stablecoins and the need for a balanced approach. While they have the potential to revolutionize global payments, it is crucial to address the associated risks through robust regulatory frameworks and industry best practices.