BIS Opens First Americas Innovation Hub

The Bank for International Settlements (BIS) and Bank of Canada have launched the Toronto Innovation Hub – the first to be established in the Americas and the seventh Hub globally. The BIS does partner with the Federal Reserve Bank of New York for a New York Innovation Hub, but that is under the auspices of the New York Fed rather than the BIS.

The new centre will explore the development of new technologies to make the financial system more efficient and inclusive, both in Canada and throughout Latin America and the Caribbean, the BIS and Bank of Canada say. It will be headed by Miguel Diaz, who moved to Toronto earlier this to establish the hub after 20 years at Banco de Mexico, and will initially focus on projects to explore next-generation financial market infrastructures, innovation for regulatory, supervisory and oversight purposes and open finance.

These are three of the BIS’s six priority themes for its Innovation Hub. Others are cyber security, green finance and central bank digital currencies, and are the focus of other Hub centres.

“The opening of the Toronto Innovation Centre is a very proud moment for the BIS,” says Agustín Carstens, general manager of the BIS. “It represents an important milestone in our efforts to build the financial system of the future through innovation and experimentation, enabling us to fully bring this mission to the Americas together with our many partners in the region. We are looking forward to collaborate with the Bank of Canada and other central banks to foster a more modern, efficient and inclusive financial system.”

Tiff Macklem, governor of the Bank of Canada, adds, “Fostering innovation has never been more crucial; that’s as true for central bankers as it is for business leaders. As the financial sector continues to evolve, we need to innovate in different areas and apply skills that aren’t traditionally associated with central banking. By doing so, Canadians can share in the benefits of innovation. That’s why this hub and our partnership with the BIS are so important.”