Former World Bank President David Malpass is calling on the United States to step up its leadership in the global race to develop and regulate stablecoins. Speaking at the ACI Payments Unleashed Summit on October 22, Malpass emphasized the transformative potential of stablecoins for both domestic and international financial systems. He warned that while the U.S. lags behind, other major economies like the European Union and China are making swift progress in this space.
Malpass described stablecoins as a pivotal innovation in the digital economy, with the potential to dramatically reduce transaction costs, enable real-time settlements, and offer a hedge against inflation and currency devaluation in emerging markets. These features, he argued, could unlock new opportunities for hundreds of millions of people worldwide and significantly enhance global trade.
However, to harness these benefits, Malpass stressed the need for a coherent, forward-looking regulatory framework in the U.S. He pointed out that without clear rules, businesses and consumers will lack the confidence to adopt stablecoins at scale, and the U.S. could lose its edge in shaping the future of global finance.
One of the key policy proposals highlighted by Malpass was the idea of granting stablecoin issuers and fintech companies access to the Federal Reserve’s payment infrastructure. This initiative, originally suggested by Federal Reserve Governor Christopher Waller, involves the creation of “skinny master accounts” that would allow non-bank financial institutions to bypass traditional intermediaries. Malpass argued this move could significantly enhance the efficiency and reliability of stablecoin ecosystems in the U.S.
He further emphasized that stablecoins represent a crucial battleground for economic influence and monetary power. “There is an ongoing global competition for dominance in the digital currency space,” Malpass said. “The United States has a unique opportunity to lead by adopting innovation-friendly policies that also protect the strength and purchasing power of the U.S. dollar.”
Malpass also hinted at the geopolitical implications of stablecoin adoption, noting that China’s digital yuan and Europe’s digital euro initiatives are not just about financial innovation—they’re strategic moves to assert influence over the future of cross-border payments and international trade.
Outside of his comments on stablecoins, Malpass has had a notable career in international finance. He led the World Bank from 2019 to 2023 after being nominated by then-President Donald Trump. Known for his critical stance on multilateral financial institutions before taking the helm at the World Bank, Malpass was also at one point considered as a possible successor to Jerome Powell as chair of the U.S. Federal Reserve.
As stablecoins continue to evolve, their impact is being felt across various segments of the financial industry. From enabling faster cross-border remittances to serving as a backbone for decentralized finance (DeFi) protocols, these digital assets are increasingly seen as essential tools in the next generation of financial infrastructure.
Industry experts note that stablecoins are also playing a growing role in emerging markets, where local currencies often suffer from instability or inflation. By offering a more stable store of value and a faster, cheaper transaction medium, dollar-pegged stablecoins like USDC and USDT are gaining traction among users in countries like Argentina, Nigeria, and Turkey.
Furthermore, institutional interest in stablecoins is rising rapidly. Major payment providers and financial institutions are developing strategies to integrate stablecoin transactions into their platforms. This includes experimenting with on-chain settlements, programmable payments, and tokenized assets that can be traded within a more efficient, blockchain-powered financial system.
Yet, without clear regulatory guidance, the sector faces hurdles. Questions around compliance, anti-money laundering (AML) standards, and consumer protection remain largely unresolved in the U.S. This regulatory ambiguity not only hinders innovation but also deters institutional players from fully engaging with stablecoin ecosystems.
To maintain its leadership in global finance, the U.S. must act decisively. Experts are urging lawmakers and regulators to craft policies that strike a balance between innovation and oversight. A well-regulated stablecoin framework could bolster the U.S. dollar’s dominance in a future where digital currencies play a central role in the global economy.
As the digital asset landscape becomes more competitive, the clock is ticking. If the U.S. delays much longer, it risks ceding influence to jurisdictions that are quicker to embrace and regulate digital financial technologies. Malpass’s message is clear: the time for action is now.