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Author: Zhao Yuhe, Wall Street News
Before the annual meeting of Jackson Hall Global Central Bank, the currency circle held a blockchain seminar in Jackson Hall, and the Federal Reserve, senior SEC officials and Trump’s son were all present.Christopher Waller, one of the next Fed Chairman’s favorite candidates and Fed Director-General appointed by U.S. President Trump, said at a meeting on Wednesday that he called for embracing the “technology-driven revolution” that is taking place in the field of artificial intelligence and stablecoins, believing that this can promote the development of the US economy.
In his speech, Waller said that digital asset innovation is “not terrible” and the payment system is undergoing a “technology-driven revolution”. The latest advances in current computing power, data processing and distributed networks are spawning many innovative payment services.
“There is nothing to be afraid of when thinking about smart contracts, tokenization or distributed ledgers.”
“The technology we have today may be new, but it’s not new to leverage innovative technology to build new payment services.”
Support the Fed in cooperation with the industry in the payment field
Waller was appointed by Trump in 2020.He had previously stated that he supported the application of certain technologies in decentralized finance (defi), believing that this could complement the traditional payment system.For example, he mentioned that distributed ledger technology can record asset transfer processes more efficiently and quickly.
In his speech on Wednesday, Waller stressed that the impact of defi in the payments field, including its risk mitigation role, may bring positive results under the premise of the private sector working with the Federal Reserve.He said both the public and private sectors can embrace innovation in their respective roles.
He said some of the most groundbreaking innovations have been “stigmatized” by being tied to digital assets in the past few years.
“These are just technologies, why is that bad? If these technologies can lead to more practical and interesting ways to apply, we should also study and adopt them.”
Media analysis said that cryptocurrency companies are weighing a key strategic issue: how much control should be held in the digital currency circulation mechanism, whether to build a brand new system, rely on shared systems, or take into account both.
In response, Waller said that the evolution of payment systems has always been the result of technological advancements, with most of the changes dominated by private sector innovation, while the key foundations are supported by the Federal Reserve – either providing core infrastructure as system operators or guiding the entire industry to develop specific solutions such as payment standards.
“This complementary relationship has made the United States a safe and efficient payment system and a backbone of domestic and international business activities. Therefore, the Federal Reserve must continue to embrace technological progress, promote services modernization, and continue to support private sector innovation.”
The Fed is studying tokens and AI technology in payments
The Fed launched the long-awaited payment network FedNow in 2023, allowing instant transfer of funds to qualifying banks with Fed-owned accounts.Before this, the United States lags behind other countries in the promotion of real-time payments to some extent.
Waller said that the Federal Reserve is studying a new round of payment technology innovations, including tokenization, smart contracts, and the application of artificial intelligence in payments.
“As a central bank, we may never go down this path, but there is no reason not to explore and see what will happen.”
Waller said that as a payment system operator, it is crucial to understand these trends, which will not only help the Fed better support private enterprises using relevant infrastructure, but also to assess whether emerging technologies have the potential to improve the Fed’s existing platforms and services.
“In fact, I believe the Fed should further strengthen its interaction with innovators in the industry, especially in the context of the increasing integration of traditional finance and the digital asset ecosystem. We are looking at how to advance this, so stay tuned.”
The Wyoming Blockchain Summit was held three days before the Jackson Hole Global Central Bank Annual Meeting.Analysts said that the summit marked the climax of the “stablecoin summer” described by Goldman Sachs previously.
Waller is also the second senior Fed official this week to publicly praise the cryptocurrency industry.Waller’s speech came a day after Fed Vice Chairman of Regulatory Affairs Michelle Bowman also said at the summit that banks and regulators should give the industry better treatment, and praised the development of tokenization.
Previous article said in a speech on Tuesday that banking and regulators must accept the benefits of new technologies such as artificial intelligence and cryptocurrencies, otherwise their role in the economy may decline.Ideally, regulators should allow these new uses to “scalate in a way that benefits the banking system”, she said.
