The Federal Reserve Bank of New York launched the New York Innovation Center (NYIC) to advance a strategic partnership with the Bank for International Settlements (BIS) Innovation Hub. As part of the New York Fed, the NYIC is collaborating with the Federal Reserve System, the BIS Innovation Hub, and public and private sector experts to validate, design, build, and launch new financial technology products and services for the central bank community.
New York Fed president John Williams said in a statement: “The work of the Center will be powered by new and different ways of thinking and experimenting, while leveraging the expertise and connections of this strategic partnership.”
“The strategic partnership will let the BIS Innovation Hub benefit from the Federal Reserve’s expertise in innovation, and allow us to contribute our own global perspective to the work of the New York Innovation Center,” said Agustín Carstens, BIS general manager, in a statement.
The NYIC aims to identify and develop insights on critical trends in financial technology relevant to central banks; explore the development of public goods to enhance the functioning of the global financial system; and advance and support expertise in the area of central bank innovation. This collaborative relationship leverages best practices, research, and subject matter expertise to support innovation in central banking.
To inform its activities, the NYIC will focus on five areas: Supervisory and Regulatory Technology, Financial Market Infrastructures, Future of Money, Open Finance, and Climate Risk. The NYIC will develop opportunities from concept to in-market solution. This work will be based on the venture development process, drawing on principles from entrepreneurship, venture capital, and corporate innovation to produce high-impact solutions.
In a speech launching the new center, Federal Reserve chair Jerome Powell said the partnership “will support our analysis of digital currencies-including central bank digital currencies; help to improve our current payment system-with a particular focus on making cross-border payments faster and less expensive; and it will provide new tools to aid our supervision of the financial system.”