Federal Reserve Governor Waller raises concerns about risk-management, governance, and oversight for interlinked fast payment systems.

Federal Reserve Governor Christopher J. Waller has expressed concerns about the ability of interlinked fast payment systems to deliver on the goals of cost-effective and timely cross-border payments for consumers and businesses. He highlighted that interlinking fast payment systems might increase the risk-management burden for participating banks and that governance, oversight, and settlement arrangements also need to be considered, along with data privacy. Waller suggests that there is no silver bullet that increases speed and efficiency without trade-offs and praises India's Unified Payments Interface (UPI) as an example of successful domestic network development before exploring interlinked networks.

August 28, 2024
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