We are paying close attention to distributed ledger technology, or blockchain, recognizing this may represent the most significant development in many years in payments, clearing, and settlement. We will work together to foster socially beneficial innovation, while insisting that risks are thoroughly understood, managed, and controlled.
During the question-and-answer period following her speech, Brainard expressed skepticism about proposals on Capitol Hill and elsewhere to foster innovation through regulatory “greenhouses” or “sandboxes” that ease compliance concerns. “Sandboxes have been used in a more forward-leaning way as a sort of safe harbor, and I think that’s premature,” she said. “It will take some time for broader payments applications, for instance.”
Read the speech.