‘Banks Are Perfectly Able to Serve Crypto Customers, It’s Safe’
Fed Chairman Jerome Powell talked about the concerns put forward in the annual report of the Financial Stability Supervision Committee, especially the risk of cryptocurrencies. Powell was asked about whether the guess in the category of unusual asset categories would damage the financial status of individuals, especially compared with a wider attention to the financial system.
Powell said the main role of the Federal Reserve is to supervise how to interact with cryptocurrencies. He pointed out that as long as the bank understands and manages related risks, banks can provide services for cryptocurrency customers to ensure that their operations are safe and reasonable. Under the supervision of the Federal Reserve, many banks have interacted with cryptocurrencies in a safe way. However, Powell pointed out that due to the relatively new nature of digital assets, banks face higher thresholds in encryption activities.
“As long as the bank can understand and manage risks, the bank can provide services to encryption customers. Moreover, it is safe and reasonable as a large number of banks that supervise and supervise. For banks engaged in encryption activities, the threshold has some thresholds. It’s higher because of them “,” he explained.
He explained that if the bank decides to provide encrypted services, it must be ensured that the activity is completely safe because it runs under the federal security network (including deposit insurance). The Fed’s caution is designed to prevent the risks of a wider financial system while supporting innovation. Powell has reiterated that the Fed does not oppose cryptocurrency innovation, but it tries to prevent excessive cautious regulations from excessively damaging legal business activities.
