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Federal Reserve Governor Advocates for AI and Stablecoins in Payment Innovations
Federal Reserve Governor Christopher Waller addressed a global banking audience in Frankfurt on September 29, 2025, during the Sibos conference, emphasizing the importance of embracing new technologies in the payments sector. Waller's speech, titled "The Next Frontier of Payments Innovation," highlighted how artificial intelligence (AI), distributed ledger technology (DLT), tokenization, and stablecoins can address persistent challenges in cross-border transactions.
Waller introduced the concept of "agentic AI," which refers to systems capable of executing tasks autonomously, such as compliance checks and fraud detection, without human intervention. He argued that these technologies could streamline international transfers and enhance the efficiency of payment systems. Additionally, he praised DLT and tokenization for their potential to improve the speed and transparency of payment processes, while smart contracts could reduce the manual reconciliation efforts that often delay settlements between financial institutions.
The governor's remarks also included a strong endorsement of stablecoins, positioning them alongside DLT and AI as essential components for developing a more advanced payment infrastructure. His comments come at a time when stablecoin legislation is under consideration in the United States Congress, suggesting that his support could influence regulatory discussions.
Waller noted that the Federal Reserve is actively researching the applications of these technologies within its payment systems, including FedNow, its real-time payment service launched in 2023. His emphasis on the interoperability of traditional banking systems with tokenized frameworks presents opportunities for companies developing solutions that bridge these two worlds.
Source: KLEA News