The Fed Will Keep Focusing on Crypto — Fed Governor Says ‘We Do Not Want to Hinder Innovation’

The Fed Will Keep Focusing on Crypto — Fed Governor Says "We Do Not Want to Hinder Innovation"

Federal Reserve Governor Michelle Bowman says while “cryptocurrency activities can pose significant risks,”the Fed does not want to “hinder innovation.” She added: “By inhibiting innovation, we could be pushing growth in this space into the non-bank sector, leading to much less transparency and potential financial stability risk.” Fed Governor on Crypto, US Economy, and Inflation

Michelle Bowman, a member of the Board of Governors of the Federal Reserve System, talked about cryptocurrency, the U.S. economy, and the Fed’s effort to lower inflation Tuesday at a Florida Bankers Association Leadership event in Miami.

Commenting on the collapse of crypto exchange FTX and other recent events in the crypto space, the Fed governor said: “These events have made it clear that cryptocurrency activities can pose significant risks to consumers, businesses, and potentially the larger financial system.”

Noting that she expects some banks to continue exploring “how to engage in crypto-related activities,” Bowman emphasized: The Fed and other banking agencies will continue to focus in this area, in light of the significant risks these activities may pose. But the bottom line is that we do not want to hinder innovation.

“As regulators, we should support innovation and recognize that the banking industry must evolve to meet consumer demand,” the Fed governor continued.

“By inhibiting innovation, we could be pushing growth in this space into the non-bank sector, leading to much less transparency and potential financial stability risk. We are thinking through some of these issues and what a regulatory approach could look like,” she opined.

Regarding the Federal Reserve’s fight against inflation, Governor Bowman stated that she has supported the Federal Open Market Committee (FOMC)’s policy actions to address high inflation over the past year. “I am committed to taking further actions to bring inflation back down to our goal,” she stressed.

The Fed governor explained that the FOMC has been tightening monetary policy since last March “through a combination of increasing the federal funds rate by 4-1/4 percentage points and reducing our balance sheet holdings.”

While noting, “we’ve seen a decline in some measures of inflation” in recent months, Bowman emphasized: We have a lot more work to do, so I expect the FOMC will continue raising interest rates to tighten monetary policy. Tags in this story Fed Governor, fed inflation, Fed rate hike, federal reserve governor, Federal Reserve governor crypto, Federal Reserve governor cryptocurrency, Michelle Bowman, Michelle Bowman crypto, Michelle Bowman cryptocurrency

What do you think about the statements by Federal Reserve Governor Michelle Bowman about cryptocurrency and the Fed’s effort to lower inflation? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Ex-Coinbase Manager"s Brother Sentenced to Prison in Crypto Insider Trading Case REGULATION | 1 hour ago Despite SEC Objection, Court Greenlights Billion-Dollar Asset Purchase Deal Between Binance US and Voyager REGULATION | 3 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleJPMorgan CEO Jamie Dimon on US Economy: ‘I Shouldn’t Ever Use the Word Hurricane’ Next articleDespite SEC Objection, Court Greenlights Billion-Dollar Asset Purchase Deal Between Binance US and Voyager Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards

Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing