‘Big tech’ a risk to the European Financial System
Saturday, 11 28 2020, Category: Technology, Country: World
Big tech and stablecoins could disrupt the European financial system, says ECB Executive Board Member, Fabio Panetta.
In a speech at the “Future of Payments in Europe” conference, Panetta stated,
“While they could offer convenient and efficient payment solutions, they risk endangering competition, privacy, financial stability and even monetary sovereignty.”
He also went on to say that fintech companies represent a ‘threat’ to traditional intermediation with their attempts to revolutionize the payments landscape.
According to the speech, the ECB’s latest view poses that stablecoins holders cannot rely on the degree of scrutiny that is now the norm in banking supervision, and the issuers do not have access to central bank standing facilities.