Federal Reserve prepared to endorse regulatory changes if blockchain proves itself

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Governor Lael Brainard (a Governor of the Federal Reserve) gave a speech at the Institute of International Finance Blockchain Roundtable, Washington, D.C. on  April 14, 2016 where he showed overall an interest in blockchain technology and said that once the safety and integrity of this technology is proven and the potential benefits are found to be in the public interest that the government should make “necessary regulatory adjustments“.

A few areas of concern raised by Brainard are about: “the confidentiality and security of firm and client records and data on the one hand, as well as law enforcement requirements and issues on the other. New technologies must be robust in practice, not just in theory, to attacks on security, and must be able to maintain appropriate confidentiality for records and data.” With regards to law enforcement, Brainard took the view that blockchain tech could “enable improved authorized access to certain data records in a much more efficient and comprehensive manner than has previously been possible, thereby potentially reducing costs associated with complying with the Bank Secrecy Act.