Federal Reserve Governor Waller: "No Need to Worry" About Using Smart Contracts, Tokenization, or Distributed Ledger Technology in Everyday Transactions

BlockBeats News, August 26. Recently, Lael Brainard, a member of the Federal Reserve Board and a leading candidate for the next Chair of the Federal Reserve, delivered a public speech on "Technological Advancements in Payments" at a blockchain seminar in Wyoming. She pointed out that the payment system is undergoing a "technology-driven revolution," with recent advances in computing power, data processing, and distributed networks driving the growth of innovative payment services.

Brainard stated that three things happen in any payment transaction. The same process applies to the world of cryptocurrencies as well. "I buy a meme coin and use a stablecoin as the means of payment. The transaction is conducted through a smart contract. Finally, the transaction is recorded on a distributed ledger. This is not scary because it occurs in the world of decentralized finance or DeFi—it is just a new technology used to transfer assets and record transactions. There is nothing to be afraid of when thinking about using smart contracts, tokenization, or distributed ledgers in everyday transactions."

Brainard mentioned that the Federal Reserve is also conducting technical research on the latest wave of innovation, including tokenization, smart contracts, and artificial intelligence in the payment space.