Federal Reserve Governor Christopher Waller affirmed Thursday that the US dollar will remain the world's reserve currency.

According to Reuters, Waller said the world continues to rely on the US dollar, which remains the dominant currency in international trade, highlighting a key advantage for the US economy on the international stage.

Challenges to US Dollar's Dominance

In his remarks prepared for a conference sponsored by the Global Interdependence Center and the University of the Bahamas in Nassau, Waller cited the potential challenges to the US dollar's dominance.

According to Reuters, he noted that recent commentary warning of a possible fall off in the US dollar's status "raises concerns about the effects of sanctions against Russia, US political dysfunction, the rise of digital assets, and China's efforts to bolster usage of the renminbi." 

However, Waller noted that these concerns have not translated to a significant decline in the US dollar's prominent position in the global economy. In fact, he pointed out that the growing utilization of digital assets, like stablecoins, which are tied to the US dollar, has increased the currency's international prominence.

READ NEXT: Federal Reserve Shifts to Cautious Approach, Signals No Rush to Cut US Interest Rates

Few Alternatives to the US Dollar

Reuters reported that US competitors have few alternatives to the dollar. Only a few international investors use China's currency primarily due to a lack of confidence in Chinese institutions, and many investors still turn to US Treasuries during periods of global uncertainty to stabilize their assets' value.

According to Waller, he does not expect the US dollar to lose its status as the world's reserve currency "anytime soon, nor even see a significant decline in its primacy in trade and finance," as he highlighted recent developments that have reinforced its dominance rather than undermining it.  

READ MORE: Donald Trump Accuses Fed Chair Jerome Powell of Making Politically Motivated Decisions to Help Democrats