A day after the end of spring quarter, I hopped on a flight to leave behind beautiful Bay Area weather, destined for the hot, humid wetlands we call our nation’s capital. I was to spend 12 weeks working at the Technology Lab of the Federal Reserve Board of Governors (the Fed), the central bank of the United States. 

My first day was rather routine. I arrived a bit early and a bit overdressed. My supervisor, Bunmi, gave me my work laptop, a first-day tour, and my onboarding checklist. I was being paid to introduce myself repeatedly and fill out forms—quite an easy gig. But this is the nation’s central bank; they are going to get their money’s worth out of me. So, I was sitting in my office after lunch setting up my Federal Reserve gym membership when Bunmi walked in and asked me to come with her, Jill, the TechLab manager, and Jeff, a senior analyst, to a TechLab panel for the Federal Reserve System’s Innovation Office. Of course, let’s go. 

We got to the System Innovation Office’s onsite, and I was doing the introductions routine once again. I met Sunayna, a Stanford alum and, probably more importantly, the Chief System Innovation Officer, who introduced us to her team. After another round of introductions, I headed to the side to sit in the audience. Jill saw this and asked me to join the team on the panel. Why not? Well, I can think of a few reasons. Anyway, three hours into my first day, I was sitting on a panel in front of the entire Federal Reserve System Innovation Office explaining how I think machine learning can be applied to financial supervision and where I see the TechLab in five years. 

That first day set the pace for the next 11 weeks and four days.

But first, a quick detour to some American history for context.

The Federal Reserve System is the central bank of the United States. It was created by the Federal Reserve Act of 1913 after a series of financial crises led to the desire for stable monetary policy. The System is similar to our broader federalist system of governance, with power distributed among multiple layers. The Board of Governors of the Federal Reserve System—where I worked—is a federal government agency led by seven president-nominated and Senate-confirmed governors. Under the Board, 12 Federal Reserve Banks serve as the operational arms of the System. Each Reserve Bank is an independent private corporation, but all work closely with the Board to execute their policies. To promote the effective operation of the U.S. economy, the Federal Reserve is afforded autonomy and independence from the more political branches of government. While the Fed certainly coordinates and receives guidance from the executive, legislative, and judicial branches, it is generally empowered to make independent monetary and regulatory policies.

Fast forward 110 years. The Federal Reserve’s mission has expanded since its inception and now covers (1) setting monetary policy, (2) ensuring financial stability, (3) supervision and regulation of banks, (4) fostering a safe payments ecosystem, and (5) consumer protection. As part of this mission, the Federal Reserve has a large group of economists who produce research to inform policymakers as they steer the world’s largest economy. However, the economy and the financial system that supports it are being transformed by technological advancement. And while the Fed has a breadth and depth of economics expertise, it does not have the same technical expertise. So, to ensure that the governors receive informed, impartial technical research before making decisions, the Fed has set up multiple teams to focus on emerging technology. Three years ago, the Board created the Technology Lab to conduct research and experimentation with emerging technologies relevant to the financial system.

The Technology Lab changes its research agenda every year. It began by researching distributed ledger technology, central bank digital currencies, and has a new set of projects this year. The core team is five members strong, with over a dozen rotators from across the System who join the TechLab to lend their subject matter expertise on a specific project. 

I was assigned to work on two projects, and while I cannot discuss the specifics of my work, it comprised 60% writing and 40% software development and data analysis. Because the TechLab is relatively small and new, I effectively worked as a core team analyst leading sub-parts of the two projects. Hopefully, in the coming months, the Fed will publish the work, and I will be able to share more then. Beyond the core research and experimentation work, I also helped moderate the TechLab’s weekly series, where we invited subject matter experts from academia, the private sector, and the government.

Other highlights during my time at the Fed included representing the Board of Governors at a nationwide Federal Reserve System showcase in front of 250 people. I also got to sit next to Chairman Jerome Powell, ask him questions at an intern event, and meet now-Vice Chair Philip Jefferson at another event.

The summer also included several highlights outside the workplace. I celebrated the Fourth of July at the White House. I attended a piano and violin concert at the French Embassy. I went on an exclusive Fed-only tour of the dollar printing facility of the Bureau of Engraving and Printing. I got to see the dollar printing machines up close, smudge a few in-production hundred-dollar bills, and hold 40 pounds of cash in one hand.

Working at the Fed this summer was an absolute pleasure and incredibly fulfilling—it made me genuinely excited about public service. I want to thank Amber, Bunmi, Cy, Jeff, Jill, Jochen, Laila, Lucas, Megan, and Monique from the TechLab team. I also want to thank Karley and Laura from the Talent Acquisition team, who guided me through the recruitment process and supported me throughout the internship. And lastly, I want to thank Sonja, Sunayna, and Susan at the officer level, who met with me to chat about the Fed, financial innovation, and career options. There are many more people who I cannot list here because of a word count limit, but I appreciate all of you. It was a genuinely wonderful summer.

A year ago, as I left the historic surroundings of Pennsylvania Avenue in Washington, D.C. to join the Ford Dorsey Master's in International Policy (MIP) at Stanford, one of my many objectives was to diversify my professional toolkit and improve my leadership skills. I have come to understand that the nature of many challenges today, particularly in the field of technology amid growing rates of global interconnection, innovation, and digitalization, requires much richer, diverse, and coordinated approaches. The leaders of today must strive to find fortitude in diversity and cooperation. 

In pursuing this objective, over the summer I interned for the Security and Intelligence Team at Duco Experts, a technology start-up headquartered in San Francisco. After five years of public service work, this represented a unique opportunity to learn the intricacies of entrepreneurship from the inside. 

Led by its inspiring CEO, Sidney Olinyk, and an elite team of young professionals, Duco works across the topics of artificial intelligence (AI), trust and safety, cybersecurity, elections, and geopolitical risk. Through its innovative advisory services, Duco supports a considerable pool of Fortune 100 companies, including some of the largest U.S. technology companies. 

The breadth of activities I carried out during my internship gave me exposure to the intersection of security and technology policy, as well as a deeper understanding of the complex decisions faced by corporate executives at major U.S. technology companies. 

In retrospect, there are three main lessons I learned during my time at Duco:

Finding Fortitude in Diversity and Cooperation

Image

One of the first experiences I had at Duco was supporting an event with different allies and stakeholders from the technology community in San Francisco and D.C. to showcase the launch of the report, Scaling Trust on the Web. Duco Experts contributed to the Atlantic Council's Digital Forensic Research Lab (DFRLab) Task Force for a Trustworthy Future Web and this event allowed me to interact with experts in the field of Trust and Safety, connect with former MIP students now working in industry, and experience first-hand how coordinated and collaborative approaches can result in innovative solutions to issues as complex as the ones faced in the cyber domain. 

The report summarizes the task force's recommendations for specific, actionable interventions that could catalyze safer, more trustworthy online spaces. And most importantly, the report reinvigorates the rationale of cooperation in cyberspace, as it highlights, for example, the role of academia, media, and civil society to help build better online spaces. I am convinced that these recommendations will have a long-lasting effect and will serve as a guide for many actors globally. 

Mapping Technological Risk Worldwide

In my role supporting the Manager for Security and Intelligence at Duco, I had the opportunity to conduct research and produce alerts relevant to major U.S. technology companies. I analyzed the implications for such companies of China's revised Counter Espionage Law, mapped the data and privacy risks posed by fake web browser extensions and the shortcomings of automatic vetting processes, detailed the risks of internet censorship and restrictions in Russia, and investigated how marketing scammers target children online. Furthermore, I gained valuable insights into timely debates in the field of generative AI technologies and challenges faced by content moderation teams when tackling CSAM online. 

During my time on the Security and Intelligence Team, I had the opportunity to work in their cybersecurity portfolio, understand the logic of business development and vertical markets, and support the delivery of high quality projects for clients, a novel experience for me. The last project I supported allowed me to widen my knowledge of cybersecurity research centers worldwide and interact with consultants, academics, and former industry experts to address clients' needs. 

Thinking Like a CEO

One of the biggest lessons I learned during my internship, a mantra I will carry with me wherever I go, came from Duco's CEO herself, Sidney Olinyk, who constantly reminded us during team meetings to: "be adaptable, be comfortable with rejection, and always think like a CEO."

My time at Duco Experts showed me the importance of flexibility and adaptability, particularly when attempting to tackle challenges related to emerging technologies. From generative AI to developments in quantum computing, the ever-evolving innovation landscape requires professionals who can lead with flexibility, humanity, and who are not afraid to redirect efforts when necessary. 

As I seek to make my way into the field of technology policy and I continue my efforts to bring unrepresented voices to the forefront of technology-related debates across the Americas, my summer experience at Duco Experts has equipped me with a valuable understanding of the start-up ecosystem in San Francisco, as well as some of the most pressing areas of opportunity in the field of cybersecurity and emerging technologies. 

My sincere gratitude to Sidney Olinyk, Neema Basri, Lauren LaBrique, Sofia Arimany and all the members of the Duco Experts team for sharing their knowledge and for leading with such humane and passionate effectiveness. 

How have the dynamics of global development finance changed with the emergence of large-scale initiatives like the BRI? What challenges does this pose to established financial institutions such as the World Bank and the IMF?

The BRI has impacted the World Bank and the IMF in very different ways. For the World Bank, it simply represents a very viable alternative for countries in need of bilateral loans for large infrastructure projects. For decades, the World Bank has developed and improved its Environmental and Social safeguards for infrastructure projects. These are intended to improve project outcomes, but they also clearly impose costs in funding and project delays for borrowers. With the emergence of the BRI, borrowers had an alternative source of financing without the World Bank’s same safeguards.

For the IMF, the challenge is clearly on assisting countries in credit distress and managing the restructuring process, and this has been playing out over the last few years. The IMF has developed programs to lend into and then “referee” debt restructurings in the past, but the present situation is very unique both financially and geopolitically.

Are there lessons that can be drawn from historical cases of emerging market debt crises that could inform strategies to prevent or manage such crises in the context of the BRI?

Historically the best “solution” for an emerging market debt crisis is a fast, deep restructuring that gives the distressed borrower the headroom to resume economic growth. That is the opposite of what is happening for the initial restructurings in the current emerging market debt crisis. There is very little trust among lenders, and those restructurings that have been negotiated have been underwhelming. Geopolitically speaking, the emerging market debt crisis currently underway is a bit unique.