the central organisation establishes trust among the participants that funds can be exchanged safely. but more than ten years ago, a new idea came onto the scene challenging the established model with a decentralised approach : distributed ledger technology. this allows crypto - assets or crypto - tokens to be transferred without a central organisation. instead, trust between the asset holder and the beneficiary is established via a cryptographic consensus mechanism. bitcoin was the first of these crypto - tokens and is the most prominent example. since it first emerged, a whole zoo of crypto - assets based on different consensus mechanisms and transfer protocols has been invented. there is a lot of creativity, it brilliance and entrepreneurial spirit. but there is also a kind of “ wild 1 / 5 bis central bankers'speeches west mentality ”, which is still a far cry from the initial idea of replacing traditional payment instruments. instead, crypto - token values fluctuate like blades of grass in a hurricane, inhibiting a wider uptake for payment purposes. consequently, stablecoins were introduced to address this. essentially, these are crypto - tokens that claim to be backed by fiat currency. prominent examples that already exist are usd coin and pax dollar. while payers and payees trust fiat money because central banks take responsibility for its stability, stablecoins merely borrow trust from the currency they are pegged to. yet, the substance of this pledge has so far neither been regulated nor put to the test. 2 different regulatory approaches nevertheless, tremendous progress has been made in payments overall. the market has been moving away from a fairly simple structure. there used to be a limited number of regulated participants domiciled within a certain area. now we are seeing a plethora of arrangements with a wide variety of different parties from all over the world, and developments are sometimes hard to keep track of. that is why i see “ payment services at a crossroads ”. and now, it ’ s time for regulators – not only in europe, but worldwide, too – to review the existing regulatory approaches in order to ensure the safety and efficiency of payments. this responsibility is also enshrined in the mandate of the bundesbank and of the other central banks around the world in their capacity as overseers. and it has led not only to a review and amendment of existing regulations and frameworks, but also to the development of new ones. in the following, i will set out

john c williams : the longer - run framework - a look ahead remarks ( via videoconference ) by mr john c williams, president and chief executive officer of the federal reserve bank of new york, at the hoover institution monetary policy virtual series : the road ahead for central banks, 7 october 2020. * * * it ’ s great to be back in california participating once again in a hoover institution monetary policy event, even if only virtually. these conferences have provided an excellent opportunity for academic experts, policymakers, and practitioners to share research and perspectives on critically important issues. john taylor is both a friend and a mentor, so it ’ s a particular pleasure to be sharing this online platform with him today. this summer, the federal open market committee ( fomc ) completed its review of the fed ’ s monetary policy framework. this culminated in august with the issuance of a new statement on longer - run goals and monetary policy strategy. 1 the fomc put this strategy into practice in its september policy statement, explicitly tying its policy actions and intentions to the new framework. 2 the new policy framework represents a substantial evolution of the fomc ’ s thinking and approach since the committee published its first framework statement in 2012. today, i ’ m going to talk about what these changes mean for policy as the economy recovers from the effects of the pandemic. but what i ’ m really looking forward to is our conversation around these important issues, so i ’ ll keep my opening remarks brief. before i go any further, i need to give the standard fed disclaimer that the views i express today are mine alone and do not necessarily reflect those of the fomc or others in the federal reserve system. our dual mandate goals while our monetary policy approach has shifted, our fundamental goals have not. the fed has two goals set by congress : maximum employment and price stability. these “ dual mandate ” goals remain on an equal footing, and our commitment to delivering on both has not changed. in addition, our assessment that a 2 percent long - run inflation rate is most consistent with achieving both of our dual mandate goals is unaltered. what has evolved is how we think about best achieving them. like all institutions, the federal reserve must be responsive to changing circumstances and adapt to new realities. since 2012, we have learned a great deal about the behavior of the economy, employment, and inflation — both in the short and longer run — and these lessons have informed our approach to