Leadership Appointments to Propel the BIS Innovation Hub Forward

New Leadership for Innovation

The Bank for International Settlements (BIS) is shaking things up! On February 19th, BIS announced two pivotal appointments for its Innovation Hub. Andrew McCormack from Payments Canada steps up as the head of the Singapore center, while Morten Bech, an experienced BIS veteran, takes the reins at the Swiss center. Talk about a power move!

The Profile of the New Heads

Andrew McCormack is no stranger to the fintech landscape. With a wealth of experience in policy and strategy, he has been instrumental in spearheading blockchain research in collaboration with the Bank of Canada. His knack for enterprise software design is expected to usher in a new era at the Singapore hub.

Morten Bech, on the other hand, has a history with BIS dating back to 2011. He has served as Secretary to the Markets Committee and has experience at prominent institutions like the Federal Reserve Bank of New York. With such a knowledgeable background, the Swiss center is in capable hands.

The Mission of the BIS Innovation Hub

Launched last November, the BIS Innovation Hub aims to foster international cooperation among central banks in exploring innovative financial technologies. Initially set up in Switzerland, Singapore, and Hong Kong, the hub is expected to expand, assuming a vital role in the evolving fintech landscape.

Research Focus: CBDCs and DLT

One of the primary objectives at the Swiss center is research on how central bank digital currencies (CBDCs) can integrate with distributed ledger technology (DLT). Additionally, there’s a keen focus on meeting the fast-growing demands of tracking and managing electronic markets. Now that’s some cutting-edge research!

A Cautious Approach to CBDCs

While innovation is the name of the game, the BIS isn’t rushing things. In a previous report, BIS general manager Agustin Carstens expressed concerns about the potential risks associated with CBDCs, including the possibility of bank runs. He suggests that the benefits must be carefully weighed against the potential destabilization of the financial system. And you thought picking a restaurant was tough!