Fintech is believed to be a “systemic risk” for the wider economy, according to a survey conducted by the US Depository Trust and Clearing Corporation (DTCC).
Almost 20% of respondents to the so-called “DTCC Systemic Risk Barometer” identified fintech as one of the world economy’s system risks in 2019. Results were up from 15% in the survey last year.
Stephen Scharf, Director and Chief Security Officer of DTCC, said he was increasingly concerned about fintech “demonstrates a growing awareness of the potential risk and highlights the need to evaluate both risks and rewards associated with fintech initiatives.”
He further elaborated
“As the industry continues to adopt fintech innovations, like blockchain, AI and cloud solutions, we must ensure that those innovations do not jeopardize the safety and security of the current global financial marketplace.”
Traditional finance figures have often proved to be cautious about cryptocurrency and the technology behind it, blockchain. A European Central Bank (ECB) executive defined Bitcoin as “the evil spawn of the financial crisis [2008].”
This month, Andreas Utermann, CEO of Allianz, a leading investment management company, said that crypto assets should be “outlawed” during a panel in London. Andrew Bailey, head of the Financial Conduct Authority of the United Kingdom (FCA), argued in the same panel that crypto assets lack “intrinsic value.”
