John Williams, Chairman of the Federal Reserve Bank of New York (Fed), said that we need to be ready for a radical digital shift in money and payments.
John Williams, Wednesday, June 1 day New York Fed and Columbia University Organized jointly by the Central Bank of the Republic of Turkey, with the participation of central bank officials, academics and guests from the financial sector, workshop on monetary policy implementation spoke at the opening.
Emphasizing that not all cryptocurrencies are backed by non-crypto assets rejecting most of the digital asset space Williams, the innovation potential of digital central bank currencies (CBDCs) and stablecoins backed by secure and liquid assets. Said he had it.
In his speech, Williams did not elaborate on the possible future impact of digital currencies. 2014 one night in reverse repo (ON RRP) discussed potential changes, noting the effects of introducing new agreements.
ON RRPA Fed bank is an agreement in which a Fed bank sells a security to an eligible financial institution and buys it back the next day with the goal of keeping the fed funds rate within a target range. took place in 2014 $2 trillionWith the ON RRP agreement, the structure of the Fed’s balance sheet had changed significantly.
Williams is also independent of technological changes. central bank’s role remains the same stressed.
As central bankers, it is crucial that we focus on fulfilling our responsibilities as we adapt to the world around us.