US Dollars on the Blockchain? Fed VP Says Not Yet at MIT Event

The idea that blockchains could be used to launch a digital fiat currency isn’t new – in fact, it’s already been considered by monetary authorities in countries like England and China.

But as far as applying the concept to the US market, Jim Cunha, senior vice president of treasury and financial services at the Federal Reserve Bank of Boston, believes there are better opportunities for the technology in banking.

“I would not call the central bank’s currency the low-hanging fruit here,” Cunha said, addressing the audience at MIT’s Business of Blockchain event yesterday.

Cunha went on to say that while blockchain tech offers potential for efficiency, there are too many technical and legal issues to overcome first, one of those being how to deal with issues of finality, which he referred to as the “holy grail” of financial services.

Cunha told the audience:

“A wire transfer is irrevocable. The Fed would never, ever reverse it. Banks count on that. There is the reason why when you get a mortgage, your lawyer is waiting for the bank to say the wire transfer has been deposited. Because when they sign that piece of paper, which is the deed, that house is

Read more ... source: CoinDesk

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