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Central bankers set up innovation hub

The hub will study fintech trends that impact central banking, among other matters

The world’s leading central banks are setting up a fintech unit to facilitate cooperation on industry innovation that impacts central banking.

The Bank for International Settlements (BIS) announced that it is establishing the BIS Innovation Hub — a  new unit that will be charged with identifying fintech trends that impact central banking; developing innovations that could enhance the operation of the global financial system; and facilitating international collaboration among central bankers on innovative fintech.

Initially, it will operate from offices in Basel and Hong Kong, with plans to set up a third office in Singapore. Its second phase will include additional centres in the Americas and Europe.

“There is a new economy emerging driven by changes in technology, demographics and the environment. While the private sector is driving these innovations, their efforts will be more effective if the hard and soft infrastructure of the global financial system support this innovation, promote resilience and level the playing field on which to compete,” said Mark Carney, governor of the Bank of England, and chair of the BIS’ Economic Consultative Committee.

“The BIS Innovation Hub will foster collaboration between central banks and, by extension, help the private sector to fully realize these major opportunities,” he added.

Source: Investment Executive