In her remarks to the International Conference on Policy Challenges for the Financial Sector, the chair of the Board of Governors of the Federal Reserve acknowledged heightened concerns about cybersecurity, and said banks must move forward into the digital age and learn how to apply Bitcoin, blockchain and distributed ledger technologies.

At a low-key three-day conference in Washington, D.C., last week organized by the Federal Reserve, the World Bank and the International Monetary Fund, more than 90 central banks from around the world heard from members of the Bitcoin community, including Perianne Boring, founder and president of the Chamber of Digital Commerce, Bloq CEO Jeff Garzik and Chain CEO Adam Ludwin.

Conference participants were told that their discussions would be off the record – no recordings or videos would be allowed. As a result, the normally conservative crowd may have been freer to explore the possibilities of a whole new way of looking at money and finances.

Bitcoin Luminaries Shine Light on New Technologies for Conference Participants

In a keynote address, Ludwin told central bankers they will issue national currencies in digital form in the near future. He cited many reasons for this shift, including:

1. Banking and finance are next up to digitalize and globalize, just as music, publishing and communications sectors have grown and benefitted from new technologies. He noted that soon, the phrase "cross-border payment" will make about as much sense as "cross-border email."

2. Bitcoin is into its seventh year and is still showing robust resilience and steady growth as the volume of transactions, increasing steadily, is now at 250,000 a day.

3. Multisig and other technologies provide more robust security than traditional banknotes and systems, and more flexibility than current centralized systems.