Many of these innovations closely mirror much broader developments in electronic commerce and banking. Payment system innovations that improve efficiency and confidence are welcome developments. Because of the complex nature of our economy and the fundamental role of the market, many of these innovations will necessarily come from the private sector.
A particularly important challenge for the Federal Reserve is to find effective ways to work with the private sector to identify and address genuine obstacles to innovation so that today’s promise can give rise to tomorrow’s achievements. 5  BIS Review 38/2000