US Treasury Department Says Cryptos Will Impact Financial Service Innovation

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Seal on Treasury Building in Washington, D.C. which is the headquarters of the United States Department of the Treasury. Source: shutterstock.com

In a highly anticipated seminal report, the US Treasury Department outlined the emerging trends in the financial sector, acknowledging the impact of cryptocurrencies. The report is designed to point out which bureaucratic barriers can be removed to enhance economic innovation and encourage experimentation.

Cryptos Will Impact Financial Services

In the report, the Treasury Department covers a variety of nonbanking financial concepts, including cryptocurrencies. The Department mentions that improvements in data and connectivity are helping in the development of complementary technologies like machine learning and cloud computing, which further improve computing resources. For financial service firms, the report states that data analytics and artificial intelligence are two of the top areas of investments.

It further states:

“Other technology developments that are poised to impact innovation in financial services include advances in cryptography and distributed ledger technologies, giving rise to blockchain-based networks.”

The World Looks Forward to Blockchain and Cryptos

The report also highlights that the interest of financial authorities in cryptographic assets has witnessed a substantial rise in the past year. It highlighted the March 2018 G20 Finance Ministers and Central Bank Governors Communiqué, where it addressed crypto assets for the first time.

The G20 ministers and governors also assigned the Financial Stability Board (FSB) “in consultation with other standard-setting bodies, including the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions, and Financial Action Task Force (FATF) to report in July 2018 on their work on crypto-assets.”

The resulting report defined the metrics that the FSB will use to monitor cryptocurrency markets while analyzing vulnerabilities in the system. G20 is concerned about the risks that the development of a new asset class could bring to the financial system and is especially concerned about anti-money laundering acts and financing of illicit activities through these anonymous, alternative currencies.

The Treasury has also thrown some light on the adoption of distributed ledger technology or blockchain by the financial service industry while pinpointing the thought that some central-bank-endorsed tokenized fiat currencies could be beneficial for the economy.

US Treasury Department Says Cryptos Will Impact Financial Service Innovation was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.