OCC To Host Symposium on Tokenization; Paves Way for 'Responsible Innovation'
Summary:
The independent Treasury Department bureau, OCC, is planning a symposium in February 2024 to discuss the potential of tokenization of financial assets and liabilities. Acting Comptroller Michael J. Hsu contrasts tokenization with cryptocurrencies, emphasizing its safety and compliance potential. The symposium will feature keynote remarks from the Bank for International Settlements' Economic Adviser and Research Head, Hyun Song Shin, and will be open for public live-streaming. Despite regularly advising against involvement with cryptocurrencies, the OCC is making efforts to stay current with technology developments in the banking sector.
The OCC, a Treasury Department's independent bureau tasked with supervising United States-based national commercial banks, is planning a symposium on tokenization in February 2024. This forthcoming event aims to foster public conversations regarding the transformative implications of converting physical financial assets and liabilities into digital tokens, with a principled focus on "responsible innovation." Acting Comptroller Michael J. Hsu has pointed out an escalating gap between cryptocurrency and the tokenization of tangible assets and liabilities. He commented that while crypto thrives on the lure of speculative earnings and remains plagued by swindles, con jobs, and cyber-attacks, it simultaneously grapples with adherence to anti-money laundering regulations. On the other hand, tokenization, aimed at resolving real-world financial settlement issues, can be securely and safely executed while being fully compliant with anti-money laundering norms.
Hyun Song Shin, Economic Adviser and Research Head at the Bank for International Settlements (BIS), is slated to deliver the keynote address in the symposium. Panel discussions will revolve around the legal basis for tokens, real-world applications of tokenization, the management of associated risks, and economic research on tokenization. The OCC assures the public that the entire proceeding will be live-streamed and that registration forms will be made available on its website in due course.
The OCC has a track record of discouraging banks from dealing with cryptocurrencies as manifested in its previous interpretive letters. In early 2023, it collaborated with two other banking regulators to caution banks about the possible pitfalls inherent in cryptocurrency dealings. The OCC also revealed its Office of Financial Technology in March 2023, a move aimed at expanding its technological sphere of interest and keeping up with the fast-paced evolution of the banking industry.
Published At
10/19/2023 9:11:33 AM
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