Fed governor: Banks looking to get into crypto

by Steve Brawner (BRAWNERSTEVE@MAC.COM)

Banks are wanting to offer cryptotechnology services, so the Federal Reserve is studying how those activities should be supervised while reminding them to manage risks and act legally, said Michelle Bowman, one of the Fed’s seven members of the Board of Governors.

Bowman spoke Wednesday (Aug. 17) in Little Rock at the inaugural VenCent Fintech Summit. The summit is a gathering of banking and information technology professionals sponsored by The Venture Center, an entrepreneur support organization based in Little Rock. “Fintech” stands for “financial technology.” Bowman first spoke and then answered questions from Arkansas State Bank Commissioner Susannah Marshall and from the audience.

Bowman said banks want to better understand and potentially provide cryptotechnology services in light of consumer demand. Deposits are flowing to crypto firms, so banks want to offer those services themselves. But before a bank offers crypto services, it needs to consider the risks to itself and to its customers.

https://talkbusiness.net/2022/08/fed-governor-banks-looking-to-get-into-crypto/