Federal Reserve Governor Christopher Waller has adopted a notably optimistic stance on decentralized finance (DeFi), urging bankers and policymakers to embrace the technology. In his view, DeFi represents a key component in the evolution of the U.S. payment system, not a threat to be feared.

Waller argues that the core principles of DeFi transactions are analogous to traditional financial operations, such as using a debit card. He emphasized that the underlying technology, while innovative, serves the same fundamental purpose of facilitating payments and transfers.

This perspective from a high-ranking Federal Reserve official signals a potential shift in the regulatory landscape for digital assets. It suggests a move towards a more collaborative approach, where the central bank and private sector work together to build a robust and modern payment infrastructure that incorporates the benefits of blockchain and stablecoins.