The Consumer Financial Protection Bureau (CFPB) is launching a regulatory sandbox to encourage blockchain and other financial technology innovation, said acting head Mick Mulvaney on Wednesday (July 18).
The CFPB wants to assist companies developing these new technologies, as well as the “products and services” offered by them, the Wall Street Journal reported.
Mulvaney told the WSJ that the new office spearheading the initiative will specifically examine cryptocurrencies, blockchain-based platforms, other private currencies and individual “microlending.” The agency may even look into alternatives to traditional credit scores.
“You can make a strong argument… that new technology actually offers new and innovative ways to protect consumers. You are moving light years beyond the complaint hotline to where you can really see things happening in real time.”
The new office will notably be led by Paul Watkins, who previously assisted in helping Arizona launch its own state-level regulatory sandbox for blockchain and cryptocurrency technologies, according to the WSJ.