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Fed warns of a “crossroads” in financial technology innovation
Federal Reserve Vice Chair for Supervision Michelle Bowman said the U.S. central bank is at a “crossroads”: either seize the opportunity to shape the future or risk falling behind. Speaking at the Wyoming Blockchain Symposium, she urged banks and regulators to be more open to new technologies rather than sticking to an overly cautious mindset.
Appointed by President Donald Trump, Bowman emphasized that technologies like AI and blockchain can significantly benefit the banking system, strengthening both safety and financial stability. She also compared Fed staff overseeing crypto without hands-on experience to “a ski instructor who has never put on skis.” Bowman suggested that the Fed should consider allowing staff to hold small amounts of crypto to gain practical experience and deepen expertise.
Her remarks come as the Fed recently eased restrictions on banks engaging in crypto and stablecoin activities, while ending certain supervisory programs criticized for hindering financial innovation.
Federal Reserve Vice Chair for Supervision Michelle Bowman said the U.S. central bank is at a “crossroads”: either seize the opportunity to shape the future or risk falling behind. Speaking at the Wyoming Blockchain Symposium, she urged banks and regulators to be more open to new technologies rather than sticking to an overly cautious mindset.
Appointed by President Donald Trump, Bowman emphasized that technologies like AI and blockchain can significantly benefit the banking system, strengthening both safety and financial stability. She also compared Fed staff overseeing crypto without hands-on experience to “a ski instructor who has never put on skis.” Bowman suggested that the Fed should consider allowing staff to hold small amounts of crypto to gain practical experience and deepen expertise.
Her remarks come as the Fed recently eased restrictions on banks engaging in crypto and stablecoin activities, while ending certain supervisory programs criticized for hindering financial innovation.
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