The New York Fed announced the establishment of the New York Innovation Center (NYIC) to build and test new financial technology, including CBDC, stablecoins and cross-border payments.
NYIC was created as a result of a partnership between the New York Fed and the Bank for International Settlements (BIS). Fed Chairman Jerome Powell stated that the innovation center will increase cooperation and sharing expertise among central banks.
“This partnership will support our analysis of digital currencies, including CBDC, and strive to improve our current payment system, with a focus on making cross-border payments cheaper”
According to the statement made at the launch, NYIC plans to focus on five opportunity areas. Supervisory and Regulatory Technology, Financial Market Infrastructures, Future of Money, Open Finance and Climate Risk. NYIC will be led by Per von Zelowitz, who joined the New York Fed in July.
Speaking at the arts event, Zelowitz noted that CBDC is a critical area:
“But CBDCs may also include work specific to stablecoins and cryptocurrencies and other areas that may be relevant to our perspective on biism”
