On Friday October 7th, 2016 Federal Reserve Governor Lael Brainard gave a speech on BLOCK-CHAIN technology at the Institute of International Finance Annual Membership Meeting in Washington D.C.
Brainard believes block-chain technology can vastly improve how financial transaction are carried out worldwide but only if the technology is safeguarded from hackers, terrorists and protected from a potential shutdown in a crisis.
Brainard said on Friday "We recognize the potential of distributed ledger technology, or block-chain to transform the way financial market participants transfer, store, and maintain ownership," (however) "...we want to maintain public confidence." (quote source: Reuters)
"Initial relatively simple proofs of concept must be followed by much more complex demonstrations in real-world situations before these technologies can be safely deployed in today’s highly interconnected, synchronized, and far-reaching financial markets." (quote source: Reuters)
The Federal Reserve sees the opportunities presented in using a block-chain system to streamline the cross-border record keeping involved in trade finance, lower overall risk in security transactions or potentially automatically exercise bond payments or other contracts. The Federal Reserve also understands that block-chain technology is still largely still in it's 'infancy' and would like to see a secure block-chain applied to complex situations in the real world before fully adopting the technology.
Reuters reports that the Federal Reserve expects to release a research paper on block-chain technology "later this year". (Reuters article)
My Thoughts?
(photo credits: Gustavo Frazao / Shutterstock.com)
I am curious to see how the Federal Reserve is planning to use block-chain technology. Personally, I do not believe the Federal Reserve block-chain system would be a truly decentralized version of the technology. I do however, see the Federal Reserve, Dubai's and other nations growing interest in block-chain as an overall positive thing that may help with getting the masses around the globe to adopt block-chain technology and crypto-currency. I am also very interested to see what will be in the Federal Reserve's research paper on block-chain. The research paper may expose the potential of block-chain to eyes of investors who have not been exposed to or adopted the technology yet.
We shall see "later this year" when the report is released.
Steemers what do you think about Federal Reserve Governor Lael Brainard's speech on BLOCK-CHAIN and the Fed's interest in the technology? Share your thoughts in the comment section below.
Until next time,
- Ford Mogul
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good one
Hey Trendy,
thank you for your support!
I'm new to Steemit, and don't know how to use it, but I just want to say that I'm very curious about how Federal Reserve (and any other government in general) will work on blockchain. Please continue to write about it.
Hey Yoshi!
Welcome to Steemit! Steemit is a pretty simple in regards to the platform. Many Steemers have already created and posted Steemit 101 guides that I reccomend you check out. Also, be sure to read the white paper written by the developers of steemit. In the future I will be creating my own 101 guides on Steemit so stay tuned for that..:)
Thank you for the follow and resteem! Following this blog will definitely keep you updated on how the Federal Reserve and other gov't's plan to use block-chain. Stay tuned!
Thanks for your advice, fordmogul! I didn't realize till now that I got your reply. I really need to get to know what's going on in Steemit. I will have some read, following your recommendation.
Anytime Yoshi! I am actually putting together a list of the best Steemit guides for new users. I will be posting the list over the next few days. Stay tuned!