Jim Cunha, Senior Vice President of the Federal Reserve Bank of Boston, said distributed register technology (DLT) could "fundamentally change" many areas of financial services.
In an article on the Boston Fed website, Cunha said that innovations using technology could bring benefits in payments and beyond, saying.
"The DLT has the potential to fundamentally change many areas of financial services, making payments only one.Change is also very possible in securities (sale and post-processing), derivatives, trade finance and the supply chain – some. "
The Fed has been exploring cryptocurrency since 2011, and DLT for four years, according to Cunha. "We want to understand how [DLT] can impact the payment industry, since our mission is to ensure the efficiency, security, and accessibility of payments in the United States. ", noted Mr. Cunha.
However, although there are DLT applications in the cross-border payments space, most of the work in this area is taking place outside of the United States, adding, "So I think that There is more potential for change there, but who knows what the future will hold at home. "
Cunha, who helps manage one of the 12 branches that make up the central banking system of the US Federal Reserve, continued to explain that the institution has tested various technologies in the field of payments. And while new technologies, such as data analysis, artificial intelligence and machine learning, are already disrupting some aspects of the financial ecosystem, it is important to find the " good business case, "he said.
Earlier this month, Cunha told a fintech conference organized by the Federal Reserve Bank of Philadelphia that blockchain technology "will wake up Swift and other middlemen". He also described the Fed's initiative to educate monetary policy makers, payment specialists and regulatory specialists about the risks and potentials of blockchain technology.
Jim Cunha Image from the CoinDesk Archive