AA / Istanbul / Ovunc Kutlu
US Federal Reserve (Fed) Governor Christopher Waller said on Thursday that blockchain technology holds “great promise” because the private sector could find new ways to transact.
“A blockchain is a type of distributed database that can be used to record data, including ownership of assets and transactions on assets,” Waller said during his speech in Sarasota, Florida. Further, “to date, blockchain has primarily served as a ledger for crypto-assets, but it may be appropriate to play a similar role for traditional assets such as bonds and derivatives.”
Waller said some private companies have used blockchain technology with smart contracts to improve efficiency in foreign exchange transactions.
According to the central bank governor, when the transactions are settled, the parties to these transactions can also have more flexibility, which has the ability to generate additional capital and liquidity efficiency.
“Blockchain can provide quick or instant transfers on a 24/7/365 basis, which, among other things, allows parties precise control over settlement times and, in some cases, can improve efficiency. and reduce liquidity risks,” he said. said.
Waller also said the U.S. Federal Reserve’s FedNow service, which will begin operating in July, does not rely on blockchain but will provide secure and efficient instant payment services in real time.
* Translated from English by Mounir Pennur.
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