Fed's Waller says tokenization shows promise, but risks remain - 0 views
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John Kiff on 22 Apr 23US Federal Reserve Board (FRB) Governor Christopher Waller spoke about the potential benefits and risks of blockchain-based asset tokenization and related the use of smart contracts. In particular, he pointed to the way that smart contract-enabled atomic settlement can mitigate settlement and counterparty credit risks by ensuring that the buyer will not pay if the seller does not deliver; and conversely, that the seller will not deliver if the buyer does not pay. However, smart contracts can have bugs and potential cyber vulnerabilities; and instantaneous settlement raises its own set of risks.