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You know that regulators are getting with the program when the US Federal Reserve Governor carries out an entire speech about the blockchain. Governer Brainhard recognized that the emerging "Internet of Value" as he called it, will allow the removal of friction points in clearing and settlement processes. The great outcome of this is that it shows that government bodies, like the Reserve, feel more comfortable relying on the blockchain as a secure and resilient technology. Expectations remain on regulators to make the regulatory adjustments that will help facilitate the growth and usage of blockchain.
The resulting Internet of Value holds out the promise of addressing important frictions and reducing intermediation steps in the clearing and settlement process. For example, in cross-border payments, faster processing and reduced costs relative to current correspondent banking are cited as specific potential benefits. Reducing intermediation steps in cross-border payments may help reduce costs and counterparty risks and may additionally improve financial transparency.
