Christopher Waller, a member of the Board of Governors of the Federal Reserve System, urged the financial sector to actively implement decentralized technologies in payment systems. He believes that such innovations can serve as an effective complement to traditional financial instruments, enhancing resilience and expanding opportunities for businesses and consumers.
This is reported by Finway
Decentralized Finance and New Technologies in Payment Infrastructure
During his speech at the Sibos conference in Frankfurt, Waller emphasized that the Federal Reserve must support technological progress while adhering to high security standards. He stressed that regulators should assess the potential of innovations to modernize key elements of financial infrastructure in a way that ensures its resilience and safety.
“As we enter a new era, let’s remember that this is not a new story, and we should not be afraid of new technologies or new types of providers,” Waller emphasized.
Waller pointed out that elements of decentralized finance, particularly technologies related to virtual currencies, have the potential to expand the capabilities of the existing payment infrastructure. The use of distributed ledger technology allows for faster and more efficient transfers of funds and assets, which is especially important for modern businesses.
The Role of Choice and Partnership in the Development of Payment Systems
Waller highlighted that having multiple payment solution options is key to achieving societal goals, including enhancing the resilience of the entire payment system. He underscored that the ability to choose channels for transferring money or securities enables companies to adapt to their specific business needs.
Waller also noted that some companies value the speed of transactions, while others prioritize the ability to optimize settlements for liquidity savings. In his view, this makes the payment infrastructure more competitive and flexible.
Additionally, he announced a special Federal Reserve conference on October 21 dedicated to innovations in payment systems, where issues of standards, cybersecurity, and risk management will be discussed. Waller called for collaboration between businesses and policymakers to create a safe environment for the implementation of new technologies.
In the context of the technological revolution in the financial sector, he emphasized the importance of partnership and collaborative efforts in implementing innovations while adhering to safety standards.
It is worth noting that Michelle Bowman, the Fed’s Vice Chair for Supervision, expressed support for investments in crypto assets by regulator employees to ensure a deeper understanding of this sector.
Christopher Waller, appointed to the Fed in 2020 by then-President Donald Trump, is currently viewed as one of the main candidates for the position of Fed Chair after Jerome Powell’s term ends in May. In his speech, Waller refrained from commenting on economic forecasts and monetary policy.
It should be recalled that Jerome Powell has faced criticism from Trump for his tight monetary policy and slow interest rate changes. However, on September 17, 2025, the Fed lowered the rate by 0.25% for the first time since December of the previous year.