Fed Asleep at the Wheel on Fintech

Note from the CEO: Who has the time? Oh come on, the folks at the US Federal Reserve have been so busy lowering interest rates, printing money, checking data points and having committee meetings they have flat run out of time to look into this new fintech stuff.  They will get around to it…….sometime. I’m sure nobody else is ahead of us, right???

The central bank of the US is now on record of saying the understanding of fintech and blockchain is ‘still in its infancy’. The Fed (and the banking industry) are still looking into the possibilities, problems and constraints of how the blockchain technology will work. The Fed’s research team is actively monitoring the development and innovations that most certainly will have an effect on financial markets. I would add ‘that horse is already out of the barn”.

“The banking industry’s understanding of fintech and blockchain is ‘still in its infancy,’ a long-awaited analysis report from the US Federal Reserve has said. The in-depth paper, published on Monday 5 December, was conducted to look into the possibilities – and constraints – of blockchain technology.

The Fed, which is the central banking system of the United States, highlighted a slew of existing challenges to development and adoption of blockchain-based platforms, including ‘issues around business cases, technological hurdles, legal considerations and risk management considerations.’

The research team from the Federal Reserve Board claimed to have a keen interest in ‘understanding and monitoring the development of innovations that could affect the structural design […] of financial markets.’

The findings were taken from interviews with industry stakeholders, financial institutions, government agencies, start-ups and industry consortia, it said.”

Source: IBTimes