The post Fed warns banks could become irrelevant if they ignore blockchain adoption now appeared on BitcoinEthereumNews.com. Federal Reserve Vice Chair for Supervision Michelle Bowman has called for banks to embrace blockchain technology or risk losing relevance. At the Wyoming Blockchain Symposium on Aug. 19, Bowman emphasized that regulators and banks must adopt a more proactive approach to the crypto industry. She pointed out that integrating these new innovative technologies would be crucial for maintaining relevance in a rapidly evolving financial landscape. She said: “It is essential that banks and regulators are open to engaging in new technologies and departing from an overly cautious mindset. Regulators must understand new products and services and recognize the utility and necessity of embracing technology in the traditional financial sector.” The Fed executive argued that this shift is not optional but necessary for the continued vitality of the banking system. She added that institutions that fail to evolve could become peripheral players, while forward-looking banks could strengthen their position in the market. Tokenization as an immediate use case Bowman highlighted tokenization as one of the most immediate applications of blockchain. She explained that tokenized assets can be transferred digitally without intermediaries or the physical movement of securities. She said the approach eliminates many manual steps and custodial coordination that currently creates delays and increases operational risk. Moreover, Bowman noted that tokenized systems can streamline these steps, reduce operational friction, and expand market access. Due to this, the Fed chief noted that regulatory alignment could move tokenization from pilot projects to mainstream adoption that would benefit both major banks and smaller community institutions. Fraud prevention Beyond tokenization’s efficiency, Bowman highlighted blockchain’s potential to combat fraud. In the speech, she conceded that financial institutions face risks from identity theft, scams, and related crimes. However, she argued that if blockchain can measurably reduce fraud, regulators should facilitate its adoption rather than impede it. According to… The post Fed warns banks could become irrelevant if they ignore blockchain adoption now appeared on BitcoinEthereumNews.com. Federal Reserve Vice Chair for Supervision Michelle Bowman has called for banks to embrace blockchain technology or risk losing relevance. At the Wyoming Blockchain Symposium on Aug. 19, Bowman emphasized that regulators and banks must adopt a more proactive approach to the crypto industry. She pointed out that integrating these new innovative technologies would be crucial for maintaining relevance in a rapidly evolving financial landscape. She said: “It is essential that banks and regulators are open to engaging in new technologies and departing from an overly cautious mindset. Regulators must understand new products and services and recognize the utility and necessity of embracing technology in the traditional financial sector.” The Fed executive argued that this shift is not optional but necessary for the continued vitality of the banking system. She added that institutions that fail to evolve could become peripheral players, while forward-looking banks could strengthen their position in the market. Tokenization as an immediate use case Bowman highlighted tokenization as one of the most immediate applications of blockchain. She explained that tokenized assets can be transferred digitally without intermediaries or the physical movement of securities. She said the approach eliminates many manual steps and custodial coordination that currently creates delays and increases operational risk. Moreover, Bowman noted that tokenized systems can streamline these steps, reduce operational friction, and expand market access. Due to this, the Fed chief noted that regulatory alignment could move tokenization from pilot projects to mainstream adoption that would benefit both major banks and smaller community institutions. Fraud prevention Beyond tokenization’s efficiency, Bowman highlighted blockchain’s potential to combat fraud. In the speech, she conceded that financial institutions face risks from identity theft, scams, and related crimes. However, she argued that if blockchain can measurably reduce fraud, regulators should facilitate its adoption rather than impede it. According to…