Ironically, while efficiency relies on innovation, advancement itself is dependent on the efficiency of the payment system. It's quite obvious to see how dual role competitiveness has been the driving force behind ending inefficiency through improved quality and responsiveness. Another area in which the participatory role has served the nation is in promoting stability and public confidence. In today's society it's easy to see how important the Fed really is. Every day, millions of Americans utilize the services provided by the payments system.
Integrity is very important in maintaining an overall stability within the system.
If there was little confidence in the Federal Reserve as a regulator, the entire system could become fragile. The need for stability is great. If the public loses faith in the system, they also lose faith in the value of their money. And when money no longer seems valuable, a possible impact is inflation. For instance, small institutions rely on the strength of the Fed to ensure their own viability.