The New York Federal Reserve Bank announced on Monday that it has established the New York Innovation Center (NYIC) to develop and test new financial technologies.
In partnership with the Bank for International Settlements Innovation Hub, the innovation center will bring on public and private-sector experts to validate, design, and build new financial technology products and services for central banks. The center will also focus on testing and developing CBDCs, stablecoins, and cross-border payments.
As per the announcement, NYIC aims to support central bank innovation by working with BIS’s Innovation Division to develop public goods that can be used to enhance the global financial system.
In particular, the partnership will support our analysis of digital currencies, including central bank digital currencies, help to improve our current payment system, with a particular focus on making cross-border payments faster and less expensive,” said Jeremy Powell, chair of the U.S. Federal Reserve, during the virtual launch event of NYIC.
The NYIC is set to focus on five key areas, including supervision and regulatory technology, financial market infrastructure, the future of money, open finance, and climate change risk.
Per von Zelowitz, director of the Innovation Center, said that a key focus will be given to digital currencies. “The NYIC represents a unique opportunity to drive innovation in collaboration with the central bank community,” Zelowitz said in the announcement.