At the 32nd Dubrovnik Economics Conference, U.S. Federal Reserve governor Christopher Waller and Bank of England policymaker Megan Greene offered sharply different views on the role and outlook for dollar-backed stablecoins.
Waller argued that the growing use of dollar-backed stablecoins could strengthen the global reach of U.S. monetary policy. He told the conference that countries relying more on stablecoins denominated in dollars may effectively import U.S. monetary conditions. “I’ve always just looked at stablecoins as a payment instrument; there’s nothing evil about it, nothing dangerous about it,” he said. “They are just bringing competition into the payments world.”
Greene presented a contrasting forecast. She suggested stablecoins could fade quickly as other digital instruments, particularly tokenized deposits, gain traction. “I think tokenized deposits are probably going to take over from stablecoins and five years from now, I suspect we might wonder why we were talking about stablecoins,” she said. She framed the race among digital-money options with an analogy: the CBDC is the tortoise, stablecoins the hare, and tokenized deposits the rhino — and while all three may coexist, she would bet on the rhino.
Both speakers took part in a panel titled “Stablecoins and monetary policy” at the Croatian National Bank event. Waller also reiterated his long-standing skepticism about central bank digital currencies (CBDCs), saying enthusiasm for CBDCs has waned at many central banks. Greene disagreed with that assessment, suggesting CBDCs remain a meaningful part of the future payments landscape even as other tokenized instruments evolve.
Policy developments in Washington reflect the debate’s practical stakes. Disagreement over stablecoin yield and the proper regulatory approach has slowed progress on the U.S. Digital Asset Market Clarity Act, often called the CLARITY Act, one of the most consequential pieces of crypto legislation currently under consideration in the Senate. The bill cleared the Senate Banking Committee after protracted negotiations between banks and the crypto industry, but it still needs to pass both chambers of Congress before reaching the president.
Opposition from parts of the banking sector, plus the timing of midterm elections, have made passage uncertain. Wyoming Senator Cynthia Lummis warned lawmakers that failing to adopt a clear federal framework this year could cede competitive advantage to other countries, including China, saying the U.S. risks losing leadership in the evolving digital-asset system if it does not act.
The exchange in Dubrovnik highlights two realities: stablecoins are already reshaping payment options and monetary spillovers deserve attention, and the longer-term winners among CBDCs, stablecoins and tokenized deposits remain unsettled. Policymakers, industry participants and legislators are still negotiating both technology and regulation, with the outcome likely to shape cross-border payments and financial-market dynamics for years to come.
This report aims to summarize the conference discussion and legislative context. Readers are encouraged to consult primary sources and official statements for full details.
