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.


Source : [The Fed Will Keep Focusing on Crypto — Fed Governor Says 'We ...]( undefined - Bowman Crypto Fed Says•Bitcoin News / January 12, 2023 logo


240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act. How we keep your money safe.