Bauman: The Federal Reserve's views on artificial intelligence and cryptocurrency are "about to change".

Federal Reserve Board Vice Chair for Supervision Bowman said that banks and regulatory agencies must embrace the benefits of new technologies such as artificial intelligence and cryptocurrency, or else face the risk of weakening their role in the economy. "Change is coming," Bowman said at a blockchain conference in Wyoming. Ideally, regulators will allow new uses to "grow in ways that benefit the banking system," she said. "If we don't do that, then the banking system could become disconnected from consumers, businesses, and the overall economy." 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 indicated that she will seek to reduce regulatory reviews related to reputational risk, hinting at the possibility of new rules being developed. The Fed and other banking agencies have previously committed to no longer including reputational risk as part of bank examinations, a practice that some banking groups and Republican lawmakers have criticized as unfair. "I also want to encourage the industry to work with regulators to help us understand the potential of blockchain and its ability to address other issues," she said, adding, "I am committed to changing our culture and attitude towards adopting and integrating technology, new products, and services."