The Federal Reserve Board of Governors: The Fed's view on AI and Crypto Assets is "about to change"

On August 20, Fed Governor Bowman stated that banks and regulators must embrace the benefits of new technologies such as artificial intelligence and crypto assets, or their role in the economy may be diminished. In her speech, she said, "Change is coming." She indicated that ideally, regulators would allow new uses to "surge in a way that benefits the banking system." "If that is not our approach, then we may face the risk of a decline in the correlation between the banking system and consumers, businesses, and the overall economy." Bowman urged the industry to help regulators better understand Blockchain and digital assets, as well as the potential of new technologies to address issues like fraud. She also mentioned that she would seek to reduce regulatory scrutiny related to reputational risks, hinting at the possibility of new rules. ( Jin10 )