Ex–World Bank president urges U.S. to lead on stablecoins

David Malpass calls stablecoins a global game-changer and says the U.S. should lead in innovation.

Stablecoins are quickly becoming a battleground for global economic and geopolitical influence. On Wednesday, Oct. 22, at ACI’s Payments Unleashed Summit, David Malpass, former president of the World Bank, urged the U.S. to take stablecoins seriously. Europe and China, he warned, are already moving fast.

According to Malpass, stablecoins could help expand both domestic and international trade for the U.S. However, this hinges on clear regulations that ensure customers and partners can trust stablecoin issuers.

“Stablecoins … offer lower transaction costs, real-time settlement, and relief from the regulatory and devaluation costs that block development, with potential benefits for hundreds of millions of people,” said Malpass.

The U.S. needs to lead, as Europe and China move forward

Malpass highlighted Federal Reserve Governor Christopher Waller’s proposal to give stablecoin firms and fintechs access to the Fed’s payment rails. These “skinny master accounts,” as Waller called them, would reduce their reliance on banking middlemen. According to Malpass, this change could help the U.S. take the lead in stablecoins.

“The United States has an opportunity to lead on stablecoins through innovation-friendly crypto policies and policies that defend the dollar’s purchasing power. There’s a global competition for market share in stablecoins,” Malpass said, adding that Europe and China are accelerating their efforts in this field.

Malpass, formerly an outspoken critic of the World Bank, became its president in 2019, after receiving a nomination from President Donald Trump. He was also rumored to be a potential candidate to replace Jerome Powell as the head of the Federal Reserve.