Central bankers diverge on stablecoin stance

Federal Reserve Governor Christopher Waller and Bank of England rate-setter Megan Greene used the same conference panel in Dubrovnik on May 31 to describe different futures for stablecoins. Waller framed dollar-backed stablecoins as a potentially useful payments tool and said wider use abroad could reinforce the reach of U.S. monetary policy. Greene said stablecoins may prove transitional and argued tokenised bank deposits are more likely to become the dominant digital-money format over time. The remarks came at the Croatian National Bank’s 32nd Dubrovnik Economic Conference, where both officials appeared on a panel titled “Stablecoins and Monetary Policy.” The conference program lists Waller and Greene as panellists alongside private-sector and academic participants. ### Which two central bankers were actually speaking? Christopher Waller is a governor at the U.S. (hnb.hr) Federal Reserve, and Megan Greene is an external member of the Bank of England’s Monetary Policy Committee. The Bank of England’s events calendar listed Greene for the May 31 Dubrovnik panel, while the Federal Reserve’s speeches page separately shows Waller has been speaking publicly this year on digital-asset and tokenization issues. Dubrovnik, Croatia, was the venue for the exchange. The Croatian National Bank’s published program shows the session took place on May 31 under the heading “Stablecoins and Monetary Policy.” ### What did Waller say about stablecoins? Waller has been one of the more open Federal Reserve officials on the potential utility of stablecoins. In a February 2025 speech, he called them “an important innovation for the crypto ecosystem” with potential to improve retail and cross-border payments. (bankofengland.co.uk) Reuters reported that Waller told the Dubrovnik conference on May 31 that growing use of dollar-backed stablecoins could bolster the global influence of U.S. monetary policy. (hnb.hr) That position fits his earlier argument that stablecoins can serve as payment instruments and, if properly structured, compete with existing payment rails. ### What did Greene say from the UK side? Greene said in Dubrovnik that stablecoin demand could fade and be overtaken by tokenised deposits, according to Reuters. (federalreserve.gov) Reuters also reported that she said: “Five years from now, we might wonder why we were talking about stablecoins,” and that, if forced to choose among digital-money models, she would put her money on tokenised deposits. Bank of England officials have also been laying out a framework in which regulated stablecoins can exist, but under strict conditions. (msn.com) Sasha Mills, a Bank of England executive director, said in a January speech that the Bank was working with the Financial Conduct Authority to test regulated stablecoins as a settlement asset in the Digital Securities Sandbox. ### Is the split really U.S. versus UK policy? (kfgo.com) Michael Barr, the Fed’s former vice chair for supervision and now a governor, said on March 31 that “increased regulatory certainty could lead to more rapid development of stablecoins,” but he also warned about money laundering, terrorist financing and run risk. He said stablecoins are stable only if they can be redeemed promptly at par under stress and added that “caution is warranted” because of the history of private money with weak safeguards. (bankofengland.co.uk) The UK’s prudential side has also paired openness with constraints. In a May 18 letter, the Prudential Regulation Authority said it welcomed benefits from innovation and competition in payments and settlement, while warning about safety, soundness and contagion risks if deposits and stablecoins were offered under the same brand. (federalreserve.gov) ### What is the practical difference between the two positions? The practical gap is less about whether stablecoins can exist and more about what role they should have. Waller’s public comments have emphasized payments competition and the international reach of dollar-linked instruments, while Greene’s remarks point to a future in which bank-issued tokenised deposits do more of the work stablecoins are now expected to do. That is an inference from their public remarks and from the regulatory documents each institution has issued. (bankofengland.co.uk) The next concrete steps are in rulemaking rather than speeches. The Bank of England said in January it was progressing its systemic stablecoins regime, and the PRA’s May 18 letter said UK secondary legislation passed in February 2026 now enables regulation of stablecoins and cryptoassets. In the United States, Barr said agencies still need to fill in the specifics of implementation under the GENIUS Act framework. (bankofengland.co.uk) (msn.com)