According to a survey conducted by the United States Depository Trust and Clearing Corporation (DTCC) on Dec. 11, Fintech has been believed to be a systemic risk to the broader economy.
In the DTCC Systemic Risk Barometer, 20 percent of respondents identified fintech among the system risks for the global economy in the year 2019. The results are 15 percent up from the last year’s survey.
Stephen Scharf, DTCC’s Managing Director and Chief Security Officer, has reportedly said that the increased concern over fintech directly implies to highlight the need to evaluate both risks and rewards associated with fintech initiatives after the growing awareness of the potential risk. He also explained that the industry continues to adopt fintech innovations, like AI, cloud solutions and blockchain, it should be also ensured that those innovations should not jeopardize the safety and the security of the current global financial marketplace.
The blockchain technology is often wary by the figures in traditional finance about the cryptocurrency. Cointelegraph had reported in mid-November that an Executive of the European Central Bank (ECB) had defined Bitcoin as the “evil spawn” in the Financial crisis of 2008.
The CEO of major investment management firm Allianz, Andreas Utermann, declared this month during a panel in London that the crypto assets should be “outlawed”. Andrew Bailey, the head of United Kingdom’s Financial Conduct Authority (FCA), on the same panel with Andreas Utermann had argued that crypto assets lack “intrinsic value”.