Paxos CEO Discusses Future of Stablecoins at Federal Reserve Conference

In a pivotal discussion at the 2025 Payments Innovation Conference hosted by the Federal Reserve in Washington D.C., Paxos CEO and Co-Founder Charles Cascarilla shared valuable insights on the evolving landscape of digital assets and their impact on global payments. Cascarilla's remarks highlighted the significant role stablecoins are poised to play in replatforming the financial system, making it faster, more open, and resilient, according to Paxos.

User Experience as a Barrier to Adoption

Cascarilla noted that despite advancements in blockchain and decentralized finance (DeFi), the user experience remains a barrier to mass adoption, reminiscent of the early internet era. He emphasized the need to simplify and make blockchain technology more intuitive, allowing mainstream adoption across various sectors including payments and banking.

Integrating Stablecoins into Traditional Finance

Highlighting the importance of stablecoins, Cascarilla advocated for their integration into mainstream financial transactions. He argued that stablecoins should enhance existing payment flows, enabling global money movement with speed and efficiency while adhering to the same trust and compliance standards as traditional systems.

Collaboration Between Banks and Stablecoins

Contrary to the notion that stablecoins might displace banks, Cascarilla suggested they offer opportunities for collaboration. By working together, banks and stablecoin issuers can modernize the financial system while maintaining stability and public trust, thereby enhancing U.S. competitiveness and reinforcing the dollar’s global role.

Regulatory and Infrastructure Evolution

Cascarilla stressed the importance of evolving regulation and infrastructure to unlock the potential of digital currencies. He urged policymakers to create frameworks that support innovation while preserving financial integrity, allowing stablecoins to integrate seamlessly with the broader financial ecosystem.

The Rise of Programmable Money

Looking to the future, Cascarilla envisioned an era of programmable money and embedded payments, where transactions are automated between devices and AI agents. Stablecoins, with their inherent programmability and interoperability, are uniquely positioned for this future, enabling new financial interactions such as micro-transactions and machine-to-machine payments.

As the financial landscape continues to evolve, Paxos is dedicated to building the regulated infrastructure necessary to support these changes. By integrating blockchain innovation with trust, transparency, and compliance, Paxos aims to help enterprises and institutions rethink how money is moved globally and instantly.