Federal Reserve Governor Christopher Waller recently commented on the growth of cryptocurrencies and its implications for the U.S. dollar's position as a global reserve currency.

Despite concerns that the increasing popularity of cryptocurrencies like Bitcoin could challenge the dollar's supremacy, Waller highlighted the significance of U.S. dollar-denominated stablecoins in decentralised finance (DeFi) platforms as a counteracting force.

He noted that about 99% of the stablecoin market capitalisation is tied to the U.S. dollar, which suggests a solidifying rather than diminishing role of the dollar in the global financial ecosystem.

Waller's remarks at a central banking conference underscored the continued reliance on dollar-linked stablecoins in DeFi transactions, reinforcing the dollar's status amid the crypto expansion.