Bowman Warns Banks to Embrace Blockchain or Risk Decline in Influence

Federal Reserve Vice Chair Michelle Bowman issued a clear warning to U.S. financial institutions, urging them to adopt blockchain and tokenization technologies or risk irrelevance within the evolving financial system. While banks are currently experimenting with permissioned blockchain networks for internal operations, Bowman highlights their potential to boost efficiency through tokenized assets. Despite these advancements, she emphasizes that regulators need to accelerate the adoption of new technologies to ensure a competitive edge and avoid hindering innovation.