Fed’s Hammack says AI agents using stablecoins would mark a major shift

A sitting Federal Reserve president is now talking openly about software paying software. Cleveland Fed President Beth M. Hammack said that AI agents using stablecoins would mark a major shift in how money moves.

That is not a sentence most people expected from a central banker a few years ago. It also comes with a catch: Hammack says US regulation isn’t built for the scenario she is describing.

What Hammack actually said

Hammack delivered the remarks on November 5, 2026, at the SNB and Its Watchers Conference. Her broader topic was how stablecoins relate to the US dollar’s role as the world’s reserve currency.

She pointed to two technological features as the main draw. The first is that stablecoins can run smart contracts. The second is that they can support what she called “agentic workflows.”

Smart contracts are self-executing code. Think of a vending machine: put in the right input, and the output happens automatically, with no clerk involved.

Agentic workflows take that a step further. They are tasks carried out by AI agents that act on a user’s behalf, which can include sending and receiving payments without a human clicking “confirm” each time.

Hammack suggested these features could significantly increase demand for stablecoins. Because stablecoins are overwhelmingly tied to the dollar, more stablecoin demand could, in turn, mean more demand for US dollar assets.

Then came the caveat. Hammack said current US rules do not comprehensively address smart contracts or agentic AI in payments.

That gap, she indicated, may hold back stablecoin adoption by US institutions.

The GENIUS Act and the Treasury question

Hammack’s comments land in a regulatory landscape that has changed quickly. The GENIUS Act was signed into law in July 2025 and sets up a framework for payment stablecoins, including requirements around redemption.

New federal rules under the law are set to take effect by January 2027 at the latest.

Stablecoins have existed since 2014. Nearly all of the ones outstanding today are pegged to the US dollar, a point Hammack highlighted.

That dollar peg is why stablecoins matter for the bond market. Issuers back their tokens with reserve assets, and Hammack noted that stablecoin demand could affect inflows into US Treasuries.

She stopped short of calling it a clear win for the dollar, however. Redemption access differs for people outside the US, so the net effect on global dollar demand remains uncertain, according to Hammack.

Stablecoins, yes. Volatile crypto, not so much

Hammack drew a firm line between stablecoins and the more volatile corners of crypto. She expressed skepticism that those assets could serve as effective alternatives to the dollar.

She also restated why she believes the dollar holds its reserve status. Hammack credited the rule of law, deep and liquid markets, and the Federal Reserve’s independence in managing inflation.

On that last point, she indicated inflation would remain around 2%.

What this means for stablecoins and AI payments

Hammack is effectively saying that the next wave of stablecoin demand may come from machines, and that US policy has not finished preparing for it.

If the GENIUS Act’s rules arrive by January 2027 but still leave smart contracts and agentic AI in a gray zone, US institutions could hesitate while others move.

If stablecoins support Treasury demand, policymakers have a reason to encourage them, but the uncertain picture for non-US users means the benefit to global dollar demand isn’t guaranteed.

Payments made by autonomous agents raise questions about responsibility, compliance, and oversight that existing payment law was not designed to answer, which is exactly the gap Hammack flagged.