The Federal Reserve Bank of New York and the Bank for International Settlements (BIS) have opened an innovation center to create and test new financial technologies.
According to the press release, the New York Innovation Center (NYIC) will focus on the development of new financial technologies, including digital currencies of the Central Bank and stablecoins. NYIC is the result of a strategic partnership between the New York Fed and the Bank for International Settlements (BIS) innovation center.
NYIC CEO Per von Zelowitz said that one of the innovation center’s areas of focus is digital assets. According to him, the state digital currency and stablecoins occupy a special place in NYIC’s activities.
US Federal Reserve Chairman Jerome Powell said during an online presentation that the Center will facilitate cooperation and exchange of experience between central banks.
“In particular, it will support our analysis of digital currencies, including those issued by central banks, and will help improve our payment system by speeding up and reducing the cost of international payments.”
This month, Christopher Waller, a member of the US Federal Reserve Board, said that the stablecoin market is too developed to be ignored, so clear regulation of this sector of cryptocurrencies is needed.
In the long term, digital currencies could challenge the dollar’s dominance in the global financial system, as noted in an October Fed report. In October, BIS said stablecoins and government digital currencies would not solve financial problems, but create new ones.
