Federal Reserve Bank of Boston President Susan Collins spoke out Friday, stressing the importance of closely monitoring the technological advancements shaping the financial landscape.
In a speech at an event hosted by her bank, Collins acknowledged that while technological innovations in finance hold significant promise, they also come with their own set of risks and challenges. “We must all be attuned to the very real risks and challenges” posed by these rapid advancements, she remarked, emphasizing the need for vigilance as technology reshapes the sector.
Collins offered an optimistic perspective on the potential for a “virtuous cycle,” where the financial system could benefit from technological progress, allowing it to adapt more efficiently to evolving economic conditions. This, in turn, could foster greater economic growth by making the financial system more robust and effective.
Her remarks underline the Fed’s ongoing efforts to strike a balance between embracing innovation and managing the inherent risks, ensuring that advancements in financial technology lead to a more resilient and productive economy.
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