By Pete Schroeder
WASHINGTON, March 9 (Reuters) – The U.S. Federal Reserve’s chief regulator said cryptocurrency technology could still have “potentially transformative” effects on the financial system, but needed “bumping.” fences” to materialize.
Fed Vice Chairman for Oversight Michael Barr said the recent turmoil in cryptocurrency markets makes it clear that the sector could still pose a risk to traditional banks, but the impact has been limited as regulators urge caution.
US banking regulators, including the Fed, have taken several steps in recent months to ensure that banks approach the cryptocurrency industry with caution, including requiring banks to report any cryptocurrency activity. to regulators before proceeding, and warn companies that cryptocurrency deposits can be particularly volatile.
“These liquidity issues are particularly acute for banks that have a significant portion of their balance sheets funded by such deposits,” Barr said in prepared remarks, which came a day after crypto-focused bank Silvergate Capital Corp. announced its intention to reduce transactions after facing dramatic events. losses.
Barr stopped short of saying banks have no role to play in the cryptocurrency industry, instead saying regulators are busy figuring out what companies in this space can do while staying safe. .
As he indicated, the technology behind cryptocurrencies could make financial markets and payment systems more efficient and affordable.
“Our goal is to create containment barriers, making room for innovation that can benefit consumers and the financial system in general,” he said.
(Edited in Spanish by Ricardo Figueroa)