Reserve

Bank AI

when

Read

The Federal Reserve Bank of Atlanta, via its Board of Governors, recently outlined its stance on integrating crypto and financial innovation within the banking sector, emphasizing a dual focus on regulatory adherence and technological advancements. 
A Feb. 26 <a href="https://www.atlantafed.org/blogs/take-on-payments/2024/02/26/supervisors-focus-on-payments-crypto-blockchain" target="_blank" rel="noopener">statement</a> by the Board of Atlanta’s Federal Reserve Bank highlights some of the opportunities and challenges of adopting CBDCs. 
Michael S. Gibson, Director of Supervision and Regulation at the Federal Reserve Bank of Atlanta, conveyed the institution’s proactive stance in addressing the challenges and opportunities presented by digital currencies, including cryptocurrencies and other innovative financial technologies. 
This included the Federal Reserve Bank of Atlanta’s active participation in discussions around the potential development and implementation of <a href="https://crypto.news/tennessee-senate-proposes-bill-to-exclude-cbdcs-from-states-definition-of-money/">Central Bank Digital Currencies</a> (CBDCs), reflecting its openness to digital innovation in the monetary sphere. 
The bank emphasized in its approach the <a href="https://crypto.news/borroe-finance-empowers-small-businesses-to-scale-grow-revenue/">significant influence of consumer and small business</a> demand for more innovative and responsive banking services. 
This demand, according to the bank, drives the evolution of the banking sector, pushing institutions not only toward <a href="https://crypto.news/crypto-friendly-banks/">compliance with regulatory standards</a> but also toward the adoption of new technologies, such as blockchain and cryptocurrencies. 
In this regard, the Novel Activities Supervision Program stands out as a key initiative aimed at overseeing banking activities related to complex, technology-driven financial services, specifically those involving distributed ledger technologies and cryptocurrencies. 
 You might also like: <a href="https://crypto.news/russian-central-bank-nearly-half-of-all-financial-scams-in-russia-last-year-involved-crypto/"> Russian Central Bank: nearly half of all financial scams in Russia last year involved crypto </a> 
Moreover, the Federal Reserve Bank of Atlanta emphasized the importance of banking organizations maintaining open lines of communication with regulators, especially when navigating the complexities of new financial technologies, including crypto assets. This guidance is intended to help institutions manage the risks associated with innovative banking activities, such as crypto-asset-related services, while aligning with regulatory expectations, thereby ensuring the overall resilience and soundness of the banking system. 
In alignment with this, the Federal Reserve Bank of Atlanta also acknowledged the inherent risks in banking institutions’ partnerships, especially with <a href="https://crypto.news/strike-raises-80-million-to-battle-other-payment-services-providers/">payment service providers</a> known as fintechs, that involve crypto-asset transactions or services. These partnerships are crucial for banks to remain competitive and service a broader market without starting from scratch with innovations.&nbsp; 
As of now, the Federal Reserve Bank of Atlanta maintains a neutral stance on the services banks offer. It emphasized that as long as banks adhere to legal requirements, they are neither discouraged nor barred from providing services to any specific class or type of customer, including those involved in cryptocurrencies, as permitted by law or regulation.&nbsp; 
The advisory comes at a time when cryptocurrencies are increasingly being utilized by organized crime groups for illicit transactions. A recent <a href="https://assets.ctfassets.net/t3wqy70tc3bv/4hZTbqxDJqaWGlOtwVVUkb/0d7b472c0bd15e2338968c3b0dc869d0/Immunefi_Crypto_Losses_January_2024.pdf" target="_blank" rel="noopener">report</a> by the cybersecurity firm Immunefi highlighted a marked increase in incidents of cryptocurrency-related fraud, with losses amounting to approximately $127 million in January 2024. 
Contrarily, analytics platform Chainalysis <a href="https://crypto.news/illicit-crypto-addresses-received-over-24b-in-2023-chainalysis-says/">revealed a downturn</a> in cryptocurrency-related crime in 2023, with illicit transaction volumes dropping to $24.2 billion, a 39% decline from $39.6 billion in 2022. The shift in criminal activity has seen stablecoins surpass Bitcoin as the preferred medium, mirroring their increased adoption in lawful transactions. 
 Read more: <a href="https://crypto.news/first-us-bank-to-let-customers-keep-crypto-leaves-crypto-industry/"> First US bank to let customers keep crypto leaves crypto industry </a>

Federal Reserve Bank of Atlanta urges caution while embracing crypto in banking

crypto.news

2024년 2월 27일에 게재된 다른 기사

Dampak Bitcoin Halving 2024 dan Upgrade Ethereum Terhadap Pasar Kripto

Ripple Entangled in Fresh Legal Dispute Over XRP Token Sales

Bitcoin ETFs break ‘all time volume record’ as IBIT dominates

Analyst from Fidelity Projects Bitcoin Gaining Ground Over Gold as Preferred Investment

Republican senators say CBDCs ‘will infringe on your freedom’ – Why?

Polygon (MATIC) Around $1 As Bullish Sentiment Grows; NuggetRush Early Buyers Anticipate Big Wins...

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!