Tagged: federal reserve

US Regulators Warn that Bitcoin, Other Cryptocurrencies Pose Significant Financial Stability Risk

US Federal Reserve Chief Jerome Powell recently noted that cryptocurrencies pose significant risks to financial stability. Powell stated on Thursday (May 20, 2021) that greater regulation of crypto assets may be necessary. As reported by Reuters, the US Treasury Department cited concerns about wealthy people… Read More

US Federal Regulators Add Time to Comment Period on AI and Financial Services

As was reported last March, five federal regulatory agencies joined in a consultation pertaining to the usage of artificial intelligence (AI) and machine learning (ML) within financial institutions. The Federal Reserve Board, the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and… Read More

Fed Chair Jerome Powell Cautions that Bitcoin Investments and Trading Pose Major Risks, Not Suitable for Payments or Store of Value

US Federal Reserve Chairperson Jerome Powell has cautioned that transacting in digital currencies such as Bitcoin can pose significant risks due to the high volatility nature of these new assets. Powell noted that virtual currencies remain highly volatile. He pointed out that Bitcoin may not… Read More

Bitcoin Is “Extremely Inefficient” when Used to Settle Financial Transactions, US Treasury Sec Janet Yellen Argues

US Treasury Secretary Janet Yellen stated on Monday (February 22, 2021) that Bitcoin is an “extremely inefficient” way to settle financial transactions. Yellen commented on how the digital currency’s price fell sharply (as usual) during morning trading hours, but then stayed above the $53,000 mark… Read More

US Federal Reserve Is Focused on Launching FedNow for Real-Time Digital Payments and Settlements

The US Federal Reserve, which is the central banking system of the country, has reportedly been working on a new real-time payment and settlement system, called FedNow. Governor Lael Brainard claims that the Fed plans to have FedNow fully operational as soon as possible. Brainard… Read More

Digital Dollar Team: COVID-19 Socio-economic Crisis Is a “Call to Action” for Fintech to Address “Persistent Deficiencies” in Money Distribution

The developers of the Digital Dollar project have published a detailed whitepaper that outlines the steps required for the US to issue its own virtual currency. As confirmed in the paper, the Digital Dollar Project is being developed with the assistance of the Digital Dollar… Read More

Federal Reserve Boosts Main Street Lending Program in Ongoing Battle with COVID-19 Devastated Economy

The Federal Reserve Board has announced it is expanding the scope and eligibility for the Main Street Lending Program. The Federal Reserve developed the Main Street Lending Program to help credit flow to SMEs that were in sound financial condition before the pandemic but have… Read More

Federal Reserve Chair Jerome Powell Delivers Speech on COVID-19 Driven Fed Actions: Recovery Can be Robust

Federal Reserve Chairman Jerome Powell delivered a speech today following the announcement of historic actions being taken by the central bank to stem the collapse of the once strong US economy. Earlier today, the Fed announced an unprecedented $2.3 trillion vehicle to backstop the economy… Read More

US Federal Reserve Announces Massive, New Programs to Backstop the Economy

Today, the US Federal Reserve took unprecedented actions to provide up to $2.3 trillion in loans to support the economy. The Fed said the funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical… Read More

All In: Central Banks Take Coordinated Action in Battle with Coronavirus, US Federal Reserve Drops Rates to Near Zero

In an unprecedented action, the US Federal Reserve reduced its primary credit rate by 150 basis points to 0.25 percent, effective March 16, 2020. This reduction in the primary credit rate reflects both the 100 basis point reduction in the target range for the federal… Read More

Fed Governor Lael Brainard Discusses Digitalization of Payments and Currency, Says Fed is Researching CBDC

Fed Governor Lael Brainard delivered a speech in California this past week discussing the “Digitalization of Payments and Currency.” Brainard has been at the forefront in discussing Fintech innovation providing unique perspective from her perch at the Federal Reserve. She said that BigTechs and Fintechs… Read More

CBDC: US House Representatives Ask Federal Reserve to Consider Issuing a National Digital Currency

Two US lawmakers have asked the Federal Reserve to consider issuing a digital version of the US dollar (or Central Bank Digital Currency – CBDC).  Rep. Bill Foster (D-III.) and Rep. French Hill (R-Ark.) have submitted a letter to Federal Reserve Chairman Jerome Powell in… Read More

Federal Reserve Bank of Boston to Partner with Prysm Group on Blockchain Supervisory Nodes

Digital assets and blockchain technology continue to infiltrate the financial services sector at a growing rate. Blockchain or distributed ledger technology (DLT) is being tested or used to issue securities and currencies and manage back-office operations. In light of this reality, the Federal Reserve Bank… Read More

Maxine Waters Comments on Feds Faster Payments Project: “I am pleased to see that Chairman Powell has finally taken action”

Chair of the House Financial Services Committee Maxine Waters issued a statement yesterday regarding the Federal Reserve’s announcement that it will pursue a faster payments process for consumers. Long discussed with little movement, Federal Reserve Board of Governors Member Lael Brainard revealed the “FedNow” plan… Read More

Finally. Federal Reserve Indicates Intent to Move Forward on “Fast Payments for All” with “FedNow” System

Recently, the Federal Reserve has taken political heat for its inability to pursue a faster payments system – something that has been technically feasible for years. Currently, payments and transfer languish for days creating issues for both sides of the transaction – most frequently individuals… Read More

Federal Reserve Governor Says Community Banks Partnering with Fintechs Can Offer “the Best of Both Worlds”

Last week, Federal Reserve Governor Michelle W. Bowman delivered a speech at the “Fed Family” luncheon at the Federal Reserve Bank of San Francisco. The topic of her presentation was “Community Banking in the Age of Innovation.” Bowman joined as a member of the Board… Read More

Congressional Hearing with Fed Chair Jay Powell Elicits Several Questions on Crypto and Tokenization

It is almost inevitable that topics regarding Fintech surface in Congressional hearings that address the financial services industry. This week’s hearings involving the House Financial Services Committee and Federal Reserve Chairman Jay Powell were no different and some of the questionings went beyond payments. There… Read More

Blockchain Perhaps? OCC, Federal Reserve, FDIC, FinCEN & NCUA Encourage Banks to Innovate When it Comes to AML/BSA Compliance

Multiple federal agencies have come together to encourage banks to innovate when it comes to compliance. The statement is part of a governmental working group that has been created to collaborate between some of the financial regulatory entities. The Office of the Comptroller of the Currency… Read More

Switzerland’s Sovereign Money Referendum Suggests It’s Time to Rethink the Fed

On June 10th, Swiss voters took to the polls to decide whether the country should switch to a so-called sovereign money system. Those supporting the measure felt it would make the financial system safer by preventing bankers from recklessly lending and putting people’s savings at… Read More

President of St Louis Fed, James Bullard, Critiques the Economics of a Glut of Cryptocurrencies

    In a morning talk Monday at the massive cryptocurrency conference Consensus, economist James Bullard, President and CEO of the Federal Reserve Bank of St. Louis, challenged the vision of a muliti-coin paradise espoused by ICO (Initial Coin Offering) marketers. His thesis in a… Read More

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