US Federal Reserve Governor Christopher Waller said on Sunday that the growing utilize of dollar-backed stablecoins could strengthen the global influence of US monetary policy.

Waller told participants at the 32nd Dubrovnik Economic Conference that countries that increasingly rely on U.S. dollar-backed stablecoins could effectively import U.S. monetary terms, Bloomberg News reported on Sunday.

“I have always looked at stablecoins as a payment instrument; there is nothing wrong or dangerous about it,” Waller said. “They are simply bringing competition to the world of payments,” Reuters reported.

Source: 32. Dubrovnik Economic Conference

A different view was taken by his fellow presenter, Megan Greene, a policymaker at the Bank of England, who said that stablecoins could disappear from sight within a few years. She he said: :

“I think tokenized deposits will likely replace stablecoins, and I suspect that in five years we may wonder why we are talking about stablecoins.”

Both were part of a panel discussion titled “Stablecoins and Monetary Policy” during the annual event of the Croatian National Bank.

Waller, a longtime skeptic of central bank digital currencies (CBDCs), said many central banks’ enthusiasm for CBDCs has waned. BoE’s Greene disagreed.

“I like to think of it as a huge race between the tortoise, the hare and the rhinoceros.” Greene said. “Tortoise is the central bank’s digital currency… hare is stablecoins and rhino is tokenized deposits. We’ll probably end up with all three, but if I were to put money into one… it would be rhino deposits, which I think are likely to grow,” Reuters reports.

Related: The ECB withdraws proposals for euro stablecoins, citing risks to financial stability

Stablecoin policy is hampered by US cryptocurrency legislation

The debate over U.S. policy regarding the viability of stablecoins has hampered progress on the U.S. Digital Assets Transparency Act, which is pending in the U.S. Senate.

The Cryptocurrency Market Structure Act is one of the most essential pieces of cryptocurrency regulation in the US, but it is unclear whether it will be signed into law in 2026 due to opposition from the banking lobby and the upcoming US midterm elections.

The CLARITY Act, which aims to establish a federal regulatory framework for digital assets, was passed by the Senate Banking Committee on May 15 after months of debate between banks and the cryptocurrency industry over regulations regarding the viability of stablecoins. However, before it reaches the president’s desk, it must pass both houses of Congress.

Wyoming Sen. Cynthia Lummis warned Saturday that the United States would lose its leadership in the cryptocurrency industry to other countries, including China, if lawmakers do not pass legislation this year.

Source: Senator Cynthia Lummis

“America has built a dollar-dominated financial system that has anchored global stability for centuries. The Clarity Act ensures we build the next one. The time to act is now, before Beijing decides it will,” Lummis said in X post.

To learn: Why banks are fighting stablecoins after setting the rules