CNBC's Steve Liesman joins 'Money Movers' with the latest details on the Federal Reserve's exploration of new payment innovation.

Jackson Hole

Federal Reserve Governor Chris Waller, speaking at the Wyoming Blockchain Symposium, addressed the ongoing technological transformation in payment systems. He expressed support for innovations such as distributed ledger technology and highlighted that both public and private sectors can benefit from these advancements. Waller also pointed to the GENIUS Act, recently enacted by Congress, as a significant development that could help stablecoins achieve greater potential.

Additionally, Waller noted that artificial intelligence is being used to enhance fraud detection and compliance within payment systems. He revealed that the Federal Reserve is actively researching tokenization, smart contracts, and AI applications in payments, reflecting the institution's commitment to monitoring and adapting to financial innovation.

Fed's Waller: Fed researching tokenization, AI in payments

Speaking to which, we are getting a news alert out of the Fed this morning. For that, let's get to Steve Leisman in Jackson Hole. Hi, Steve. Hey, Carl. Fed Governor Chris Waller actually speaking down the road at the Wyoming Blockchain Symposium happening right before the Jackson Hole conference, making some comments about payment systems and crypto, saying the payment system has experienced a, quote, technology-driven revolution, and he sees no reason to fear transactions that use a distributed ledger. It's important from a Fed standpoint as to whether or not they have concerns about the distributed ledger in terms of financial compliance and things like that, saying the public and private sectors can both embrace innovations in payments. And he calls the GENIUS Act recently passed in Congress and signed by the president an important step that could help stablecoins, quote, reach their full potential. AI, he says, is being used to help advance fraud detection and compliance, and it's important for the Fed to continue to embrace all these advances. Finally, he reveals that the Fed is researching tokenization, smart contracts, and AI in payments. Guys, that's something we used to talk a lot about, but now the Fed is deeply involved in monitoring very closely all of these innovations that are happening, and they're important for the Fed, which, as you know, not only makes monetary policy, but also deeply involved in financial regulation. Sarah? Yeah, notable that the Fed's looking into it, at least, and he's also in the running for Fed chair, and we know the president cares a lot about crypto as well.

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Nashville

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East Coast of the United States

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Breakdown