Bowman Says ‘Change Is Coming’ to How Fed Views AI and Crypto
Banks and regulators must embrace the benefits of new technologies such as artificial intelligence and crypto or risk diminishing their role in the economy, said US Federal Reserve Governor Michelle Bowman.
“Change is coming,” said Bowman, the central bank’s top bank watchdog, in prepared remarks for the Wyoming Blockchain Symposium. Ideally, regulators will allow new uses to “proliferate in a way that benefits the banking system,” she said. “If this is not our approach, then we risk the banking system becoming less relevant to consumers, businesses and the overall economy.”
Bowman called on the industry to help regulators better understand blockchain and digital assets, and the potential for new technologies to address issues such as fraud. She also said she would seek to curtail regulatory scrutiny tied to reputational risk, suggesting that new rules could be crafted.
The Fed and other banking agencies previously promised that its examiners would no longer consider reputational risk as part of their bank exams, following calls from some bank groups and Republican lawmakers to end a practice that critics have viewed as unfair.
“I would also like to encourage the industry to engage with regulators to help us understand blockchain and its potential to solve other problems,” she said, adding “I am committed to changing our culture and attitude toward the adoption and integration of technology and new products and services.”
Source : Bloomberg
