Former World Bank President Urges U.S. to Lead Stablecoin Innovation Amid Global Competition

David Malpass, former president of the World Bank, has called for the U.S. to establish clear regulatory frameworks for stablecoins, warning that Europe and China are advancing rapidly in this space. Speaking at ACI’s Payments Unleashed Summit, Malpass emphasized the transformative potential of stablecoins in reducing transaction costs and enabling real-time settlements.

Malpass endorsed Federal Reserve Governor Christopher Waller’s proposal to grant stablecoin issuers limited access to the Fed’s payment systems, a MOVE that could diminish reliance on traditional banking intermediaries. "Stablecoins offer lower transaction costs, real-time settlement, and relief from regulatory hurdles," Malpass noted, highlighting their potential to benefit millions globally.

The race for stablecoin dominance is intensifying, with geopolitical implications. Without decisive action, the U.S. risks ceding ground to competing economies already forging ahead in digital currency innovation.