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.

Summary

• The former World Bank president urged the U.S. to lead on stablecoins with clear regulation
• Malpass welcomed the Fed Governor Chris Waller’s proposal for limited master accounts
• He also warned that Europe and China are moving fast in the stablecoin race

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.

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.

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.