US Fed Reserve Partners BIS Innovation Hub for Digital Asset Analysis
In a move that reflects the changing times and efforts of regulators to remain in control of the digital market, the Federal Reserve Bank of New York has partnered with the Bank for International Settlements (BIS) Innovation Hub to launch its New York Innovation Center (NYIC).
U.S. Federal Reserves to partner BIS Innovation Hub
The Federal Reserve chair, Jerome Powell, announced the partnership at the opening of the NYIC. The center will focus on the development of products to improve the global financial system.
In this partnership, BIS Innovation Hub will assist the agency with analyzing digital currencies as the Fed seeks to develop a central bank digital currency.
BIS Innovation Hub is a multinational network with innovation centers in London, Singapore, Hong Kong SAR, Switzerland, Stockholm, and more.
It focuses on critical trends in the global banking system and develops technology to enhance the functionality of the financial system. In addition, BIS works with Central Banks to achieve monetary and financial stability and has supported research on integrating CBDCs into the financial system.
The partnership could spur Digital Dollar launch
By partnering with the BIS innovation hub, the Federal Reserve Bank has shown its willingness to embrace new trends and technologies so as to make the agency ready for the ongoing digital revolution and massive development of its central bank digital currency (CBDC) project.
According to Powell, technology and innovation have grown quickly over the last decade, and the financial sector is also affected by advancements in machine learning, digital technologies, big data, and artificial intelligence.
In his speech at the opening of the NYIC, the chair mentioned the importance of partnership and its focus on digital assets. Through this, the center seeks to improve existing cross-border payment systems.
Although the Fed has not released an official statement regarding its works on the digital dollar, Powell has hinted that the agency is currently working on the project. This partnership, thus, further fast-tracks the possibility of a US dollar CBDC.