Fed's Waller Sees 'Promise' in Using Blockchain Tech

The video discusses the use of smart contracts and blockchain to improve efficiencies in financial transactions, such as foreign exchange and repo transactions. It highlights the potential of atomic settlement to mitigate risks but also warns of the risks associated with instant settlement, including fraud and cyber vulnerabilities. The video emphasizes the importance of critically evaluating innovations like tokenization, AI, and quantum computing, while encouraging those that benefit society and finance.

What is one of the main benefits of using blockchain for intraday repo transactions?

• Limited transaction times

• Increased transaction fees

• Reduced liquidity

• Enhanced flexibility in settlement times

What is a common risk associated with smart contracts?

• High transaction costs

• Bugs in the contract code

• Lack of transparency

• Slow processing times

Why might instant settlement pose a risk in financial transactions?

• It eliminates the possibility of correcting mistakes

• It allows for transaction reversals

• It requires manual intervention

• It increases transaction costs

Which of the following is NOT mentioned as a potential future innovation in finance?

• Artificial intelligence

• Blockchain

• Quantum computing

• Web3

What is the speaker's perspective on the claims made by champions of new innovations?

• They are irrelevant to finance

• They should be critically evaluated

• They are always beneficial

• They should be accepted without question