MNI BRIEF: Fed's Waller - Dollar To Remain Reserve Currency
MNI (WASHINGTON) - The U.S. dollar will likely keep its status as the world’s reserve currency, Federal Reserve Governor Christopher Waller said Thursday, adding that stablecoins could enhance the dollar's preeminent global status in remarks to the Atlantic Council in Washington, DC.
Asked if there is anything that could challenge the status of the dollar as a global reserve currency: "I don't see this happening," he said. "The U.S. is the most vibrant economy in the world. Just look at it compared to everybody else right now. We're the largest economy in the world." He highlighted that over 90% of global transactions are already dollar-denominated, asserting that dollar-based stablecoins would further strengthen this dominance.
Investors and businesses around the world choose and prefer to use the dollar, he emphasized. "We have deep liquid capital markets, certainly for treasuries, which is the ultimate backstop for a lot of this," he said, also noting rule of law. "It would have to be the case if somebody would wake up and say, 'There's somebody else offering that better than the U.S.' I don't see that happening anywhere on the horizon."