The evolving landscape of digital finance is increasingly welcoming Ripple and XRP, as Federal Reserve Governor Chris Waller voiced strong support for blockchain innovations. Speaking at the SALT conference in Jackson Hole, Wyoming, Waller dismissed fears surrounding this burgeoning financial sector, aligning with sentiments shared by other top Fed brass this week.

Fed Governor Supports Blockchain Innovation

Highlighting his confidence in emerging financial technologies, Waller proclaimed, “There is nothing to be afraid of when thinking about smart contracts, tokenization or distributed ledgers.” He acknowledged that utilizing cutting-edge technology in payments is not a novel concept, further reinforcing the legitimacy of platforms such as Ripple’s XRP Ledger (XRPL).

His speech comes at a time when blockchain-based systems like XRP Ledger continue to gain traction for cross-border transactions and enhanced payment services. Waller, appointed to the Federal Reserve Board in 2020 by then-President Donald Trump, has consistently supported stablecoins and broader crypto advancements.

Challenging the Negative Narrative Around Crypto

Waller criticized the public distrust often associated with digital assets. Technologies like distributed ledgers and tokenization, he argued, should not be vilified because of their use cases in the crypto space. “Those are just technologies, why are they so bad?” he asked during his speech, emphasizing their potential to improve transactional efficiency across industries.

Ripple, through its XRP token and decentralized ledger, has exemplified such technological promise, helping institutions reimagine financial services while promoting transparency and speed.

Exploring New Territory in Central Banking

Waller mentioned that the Federal Reserve is actively examining how to incorporate blockchain features such as tokenization and smart contracts into its systems. “We may never go that route as a central bank,” he noted, “but there’s no reason we don’t explore to see what happens.” This open-minded exploration of distributed ledger solutions echoes Ripple’s ongoing dialogue with government regulators and banking institutions worldwide.

Even if the Fed doesn’t ultimately adopt blockchain infrastructure, their interest underscores its growing relevance in mainstream financial discussions. That attention alone boosts the legitimacy of Ripple’s XRPL and other similar platforms exploring central bank digital currencies (CBDCs).

Growing Institutional Support for Crypto Technologies

The endorsement by Waller follows that of Fed Vice Chair for Supervision Michelle Bowman, who also expressed her support for tokenization just a day earlier. Bowman advocated for fairer treatment of blockchain startups by banks and regulators, citing the transformative potential of these tools for the financial sector.

Ripple’s framework, closely aligned with the values of compliance and regulatory engagement, stands to benefit from this shifting tone at the Federal Reserve.

What This Means for Ripple and XRP

With figures like Waller and Bowman openly supporting blockchain tools, the ecosystem surrounding Ripple and XRP gains both credibility and momentum. The conversation extends beyond speculation, focusing instead on usability, regulation, and real-world application of technology to transform payment infrastructures.

As financial institutions look to innovate, Ripple’s solutions—enabled by XRP—could become increasingly crucial in a world where the lines between traditional finance and decentralized networks continue to blur.

Related: XRP, Bitcoin Could React to Inflation Data

To stay involved in regulatory developments, readers are encouraged to register for the upcoming CoinDesk: Policy & Regulation event in Washington, D.C., on September 10.