Fed Governor Bowman: Fed's views on artificial intelligence and cryptocurrencies "about to change"

Banks and regulators must embrace the benefits of new technologies such as artificial intelligence and cryptocurrencies or risk diminishing their role in the economy, according to Bowman, a Federal Reserve governor. "Change is coming," she said in her remarks. She said that, ideally, regulators would allow new uses to "proliferate in ways that benefit the banking system." "If that's not our approach, then we could be at risk of a decline in the relevance of the banking system to consumers, businesses and the economy as a whole." Bowman called on the industry to help regulators better understand blockchain and digital assets, as well as the potential of new technologies to address issues such as fraud. She also said she would seek to reduce regulatory scrutiny related to reputational risk, hinting that new rules could be created.