Fed: blockchain is transformative

Author: Edward Price | Published: 18 Oct 2016

Federal Reserve Governor Lael Brainard has said distributed ledger technology presents both risks and opportunities to the financial sector. Counsel and industry in the US agree – but also hope the regulators will tread with care.

Governor Brainard was speaking at the Institute of International Finance’s (IIF) annual meeting on October 7 in Washington DC. For a while, central banks had seemed slow in coming to grips with the new cluster of technologies referred to as blockchain. Now, however, they are increasingly active.   

"We recognize the potential of distributed ledger technology, or blockchain, to transform the way financial market participants transfer, store, and maintain ownership records of digitised assets," Brainard said.

That attitude shift has been welcomed by industry.

Lael Brainard, Federal Reserve"The fact that many central bank governors now recognise blockchain as an import new technology, and one that they must do a better job of understanding,...