Fed's Williams: "Critical" central banks understand impact of digital money


FILE PHOTO: John Williams, president of the Federal Reserve Bank of New York, speaks at an event in New York, U.S., November 6, 2019. REUTERS/Carlo Allegri

NEW YORK (Reuters) - The development of digital currency and payments technologies could change how the Federal Reserve conducts monetary policy and the composition of its balance sheet, issues the central bank will need to work to understand, New York Fed President John Williams said Wednesday.

"Digital transformation could have implications for markets and for our interactions with counterparties, as well as how we carry out monetary policy," Williams said in opening remarks to a research conference at Columbia University.

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