Opinions

Financial institutions, regulators, and developers are aligning around a common goal of creating infrastructure that makes our global financial system faster, more efficient, and more secure.

The 21st century financial system that digital currency promised is being built, but by banks, not by the bitcoin crowd.

The revelation that Mythos, the latest version of Anthropic's Claude large language model, can unearth unknown vulnerabilities in computer systems and websites is a crisis moment, especially for community banks.

The debate over how to define yield in terms of stablecoin rewards feels like the debate over how to define usury in medieval Europe.

Banks have a narrow window to shape how agent identity verification works before transaction volumes force ad hoc approaches that will be harder to standardize later.

Just as the invention of pneumatic nail guns didn't eliminate the need for expert carpenters, the appearance of new AI tools for banks won't obviate the need for experienced and well-trained bank employees.

Regulators can compel regulated stablecoin issuers to perform AML checks and even freeze assets. But there are a lot of digital currencies out there beyond stablecoins.

First Citizens finally pulls the plug on the failed bank it acquired in 2023. Also, prediction markets are keeping regulators and lawyers busy.

The challenge for banks is not whether to adopt AI but how to do so with discipline, judgment and a clear understanding of its limits. The history of technology firms overpromising is extensive in the banking industry.