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David Malpass calls stablecoins a global game-changer and says the U.S. should lead in innovation.<\/p>\n
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Stablecoins are quickly becoming a battleground for global economic and geopolitical influence. On Wednesday, Oct. 22, at ACI\u2019s Payments Unleashed Summit, David Malpass, former president of the World Bank, urged the U.S. to take stablecoins seriously. Europe and China, he warned, are already moving fast.<\/p>\n
According to Malpass, stablecoins could help expand both domestic and international trade for the U.S. However, this hinges on clear regulations that ensure customers and partners can trust stablecoin issuers.<\/p>\n
\n\u201cStablecoins \u2026 offer lower transaction costs, real-time settlement, and relief from the regulatory and devaluation costs that block development, with potential benefits for hundreds of millions of people,\u201d said Malpass.<\/p>\n<\/blockquote>\n
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The U.S. needs to lead, as Europe and China move forward<\/h2>\n
Malpass highlighted Federal Reserve Governor Christopher Waller\u2019s proposal to give stablecoin firms and fintechs access to the Fed\u2019s payment rails. These \u201cskinny master accounts,\u201d as Waller called them, would reduce their reliance on banking middlemen. According to Malpass, this change could help the U.S. take the lead in stablecoins. <\/p>\n
\n\u201cThe United States has an opportunity to lead on stablecoins through innovation-friendly crypto policies and policies that defend the dollar\u2019s purchasing power. There\u2019s a global competition for market share in stablecoins,\u201d Malpass said, adding that Europe and China are accelerating their efforts in this field. <\/p>\n<\/blockquote>\n