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‘Be careful what you wish for,’ says OCC head

Tokenised deposits could help manage intraday risk but could also speed up bank runs
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‘Be careful what you wish for,’ says OCC headMichael J. Hsu, acting director of the US Office of the Comptroller of the Currency (Image: Al Drago/Bloomberg)

A US regulator has said the “tokenisation” of bank deposits could help manage intraday risk but warned that the lower friction introduced by concealing sensitive data could speed up potential bank runs. 

The technology itself can be both “helpful and hurtful” said Michael J. Hsu, acting director of the Office of the Comptroller of the Currency, urging the industry to be “careful what you wish for”.

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