{"id":9791,"date":"2023-01-16T01:17:43","date_gmt":"2023-01-16T01:17:43","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=9791"},"modified":"2023-01-16T01:17:44","modified_gmt":"2023-01-16T01:17:44","slug":"the-fed-will-keep-focusing-on-crypto-fed-governor-says-we-do-not-want-to-hinder-innovation","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=9791","title":{"rendered":"The Fed Will Keep Focusing on Crypto \u2014 Fed Governor Says &#8216;We Do Not Want to Hinder Innovation&#8217;"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>Federal Reserve Governor Michelle Bowman says while \u201ccryptocurrency activities can pose significant risks,\u201d <\/strong><strong>the Fed does not want to \u201chinder innovation.\u201d She added: \u201cB<\/strong><strong>y 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.\u201d<\/strong><\/p>\n<h2>Fed Governor on Crypto, US Economy, and Inflation<\/h2>\n<p>Michelle Bowman, a member of the Board of Governors of the Federal Reserve System, talked about cryptocurrency, the U.S. economy, and the Fed\u2019s effort to lower inflation Tuesday at a Florida Bankers Association Leadership event in Miami.<\/p>\n<p>Commenting on the collapse of crypto exchange FTX and other recent events in the crypto space, the Fed governor said: \u201cThese events have made it clear that cryptocurrency activities can pose significant risks to consumers, businesses, and potentially the larger financial system.\u201d<\/p>\n<p>Noting that she expects some banks to continue exploring \u201chow to engage in crypto-related activities,\u201d Bowman emphasized:<\/p>\n<p>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.<\/p>\n<p>\u201cAs regulators, we should support innovation and recognize that the banking industry must evolve to meet consumer demand,\u201d the Fed governor continued.<\/p>\n<p>\u201cBy 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,\u201d she opined.<\/p>\n<p>Regarding the Federal Reserve\u2019s fight against inflation, Governor Bowman stated that she has supported the Federal Open Market Committee (FOMC)\u2019s policy actions to address high inflation over the past year. \u201cI am committed to taking further actions to bring inflation back down to our goal,\u201d she stressed.<\/p>\n<p>The Fed governor explained that the FOMC has been tightening monetary policy since last March \u201cthrough a combination of increasing the federal funds rate by 4-1\/4 percentage points and reducing our balance sheet holdings.\u201d<\/p>\n<p>While noting, \u201cwe\u2019ve seen a decline in some measures of inflation\u201d in recent months, Bowman emphasized:<\/p>\n<p>We have a lot more work to do, so I expect the FOMC will continue raising interest rates to tighten monetary policy.<\/p>\n<p><em><strong>What do you think about the statements by Federal Reserve Governor Michelle Bowman about cryptocurrency and the Fed\u2019s effort to lower inflation? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA 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.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: 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.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/the-fed-will-keep-focusing-on-crypto-fed-governor-says-we-do-not-want-to-hinder-innovation\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Governor Michelle Bowman says while \u201ccryptocurrency activities can pose significant risks,\u201d the Fed does not want to \u201chinder innovation.\u201d She added: \u201cBy 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.\u201d Fed Governor on Crypto, US Economy, and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9792,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-9791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9791"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9791\/revisions"}],"predecessor-version":[{"id":9793,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9791\/revisions\/9793"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/9792"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}