Bundesbank President: FinTech Needs Greater Regulatory Oversight

Bundesbank President Jens Weidmann has expressed that FinTech requires more regulatory oversight because of its potential to threaten financial stability and the banking sector.

In a Reuters report, Weidmann, who is part of the European Central Bank’s Governing Council, is reported as saying that a clearer picture is needed to understand better in what way FinTech could potentially pose a risk to the finance industry.

He said:

Many believe the most disruptive potential is to be found in blockchain or distributed ledger technology, which promises to allow payment transactions and securities settlement to bypass banks and central counterparties altogether.

Despite Weidmann stating that there have been advances in the utilization of digital finance with the increase of consumer access, he stressed that there were concerns over how FinTech would act if the economy took a downturn.

FinTech to Disrupt Banking?

Weidmann is not the only individual who believes that financial technology has the potential to disrupt the banking sector.

Last year, former Group CEO of Barclays, Antony Jenkins, predicted a future within the next ten years where Read more ... source: CryptoCoinsNews

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