WASHINGTON—A new partnership between the Federal Reserve System and the innovation arm of the Bank for International Settlements (BIS) aimed at responding to changes in technology has been announced by Fed Chairman Jerome Powell.
In a speech delivered at the opening of the New York Innovation Center, based at the Federal Reserve Bank of New York, Powell said “rapid innovation” is transforming the financial sector.
“Certainly, rapid innovation, including through the application of advanced digital technologies, machine learning, artificial intelligence, and big data, is revolutionizing the financial sector,” Powell stated.
Powell said the purpose of the New York Innovation Center will be to “analyze and bring technology to bear on improving the global financial system.”
The Fed Chair said the New York Innovation Center will partner with the BIS Innovation Hub, the Bank for International Settlements’ arm charged with fostering innovation among central banks worldwide, The Daily Hodl reported.
“Increasing the synergies of the New York Innovation Center will be its strategic partnership with the BIS Innovation Hub, recently established to foster dialogue, collaboration and knowledge-sharing among central banks and other authorities and institutions,” Powell stated.