The Chamber of Digital Commerce, the world’s leading trade association representing the blockchain industry, helped facilitate discussions at an event with blockchain- and FinTech-based theme, hosted by the Federal Reserve, World Bank, and International Monetary Fund (IMF) in Washington, DC on June 1 through 3, 2016.

The event titled “Finance in Flux: The Technological Transformation of the Financial Sector”, saw participation from central banks from over 90 countries. The conversations with senior level directors of central banks from around the world indicated a high level of interest in blockchain technology.  

Janet Yellen, the Chair of the Board of Governors of the Federal Reserve System, emphasized on cybersecurity concerns while acknowledging that the global financial system has benefited from FinTech. Yellen encouraged central banks to learn about financial innovations including bitcoin, blockchain and distributed ledger technologies.

Adam Ludwin, CEO of Chain, delivered the keynote address in the Board of Governors of the Federal Reserve System’s Board Room. He said that blockchain technology will provide central bankers, regulators and policy makers with new tools to enhance the safety, soundness and capabilities of the global financial markets and payments systems.

“As participants on industry blockchain networks, regulators will gain real-time transparency to measure systemic leverage and monitor compliance. And as potential operators of networks for issuing central bank digital currencies, policy makers have the opportunity to forge a payments system that will enhance security, reduce settlement times and create new possibilities for monetary policy," said Ludwin. 

Similar views were put forward by Perianne Boring, Founder and President of the Chamber of Digital Commerce. He urged the Federal Reserve and central banks to focus on and embrace innovation in blockchain and distributed ledger technology, adding that the technology is capable of providing the Fed and other regulators with next generation tools to fulfill their mission of monitoring the safety and soundness of the financial system more effectively.  

Jeff Garzik, CEO of Bloq and Bitcoin Core Developer, outlined the innovative elements of blockchain technology, including trust shifting, decentralization, cryptography, immutability and others. 

“Some of the greatest potential benefits of blockchain technology are going to be first seen and actively leveraged in emerging nations,” said Garzik.