Federal Reserve Governor Waller said in a speech today that the potential application of blockchain technology to record transactions in traditional assets such as securities and derivatives is “promising.”
Blockchain can provide fast money transfers 24/7 and allow for programmable transactions of tokenized assets, Waller said: That’s not to say tokenization is risk-free, just that it’s a promising prospect.
Waller added that the Fed is in regular discussions with banks that are exploring the use of artificial intelligence to understand and manage associated risks.