Michelle Bowman, a senior official at the U.S. Federal Reserve, stressed that the future of banking requires a more open stance toward cryptocurrencies and emerging technologies.
Speaking at the Wyoming Blockchain Symposium, Bowman said the financial system is at a critical crossroads, urging banks and regulators to move away from overly cautious approaches. She pointed to the Fed’s decision in June to end its crypto supervision program for banks and remove “reputational risk” from examinations as key examples of this shift.
Bowman highlighted that technologies such as artificial intelligence and blockchain could significantly benefit the banking system. She added that easing restrictions on crypto could pave the way for more innovation within the sector.
She also suggested that Fed staff should hold small amounts of crypto to better understand the asset class, stating, “I wouldn’t trust ski lessons from someone who’s never skied. Likewise, reading books isn’t enough to understand crypto.” Her remarks sparked fresh debate on how the Fed should embrace technological transformation.
