Panel debating the likely causes of “The Next Global Financial Crisis” at the closing leadership dialogue of the Future of Finance Summit agreed that it may be precipitated by a clash between the traditional financial industry and an emerging technology ecosystem
September 19, 2019 | Foo Boon Ping- At the Future of Finance Summit 2019, a panel of industry experts debated on what will most likely cause the next financial crisis
- Techfins, market trust and resilience, the US dollar as the default global reserve currency, and potential risk of leverage in the markets, were pointed out as likely causes
- After a heated discussion the panel came to a conclusion that it will likely be triggered by the loss of trust and confidence of markets in either or both of competing ecosystems
The next major financial crisis is unlikely to be caused by the banking sector as banks are fully, if not overly, regulated and severely restricted in the kind of risks they are allowed to take. This appeared to be the consensus view of an expert panel of economists, bankers, and financial market veterans.
“It is not going be a traditional banking financial crisis the way we know it. We have known financial crisis from banks before and we have regulated them so much and they are not where the threat is coming from,” said Dusan Stojanovic, founder and director at True Global Ventures.
Instead, he believes that it is the largely unregulated tech sector comprising big technology companies that are getting into financial services that will cause the greatest risk to financial stability.
“Where I see the threat is in five to 10 years when the Facebooks, Googles, Amazons, Tencents, Ant Financials, and Baidus have created a completely dominant position, not only in terms of internet, but what they call in China, internet finance, or techfin,” he explained.
The risk from techfin
David Chang, fintech advisor and vice president of the Shanghai Blockchain Association agrees. He described such techfins as the “barbarians at the gate” that w...
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Panel debating the likely causes of “The Next Global Financial Crisis” at the closing leadership dialogue of the Future of Finance Summit agreed that it may be precipitated by a clash between the traditional financial industry and an emerging technology ecosystem
September 19, 2019 | Foo Boon Ping- At the Future of Finance Summit 2019, a panel of industry experts debated on what will most likely cause the next financial crisis
- Techfins, market trust and resilience, the US dollar as the default global reserve currency, and potential risk of leverage in the markets, were pointed out as likely causes
- After a heated discussion the panel came to a conclusion that it will likely be triggered by the loss of trust and confidence of markets in either or both of competing ecosystems
The next major financial crisis is unlikely to be caused by the banking sector as banks are fully, if not overly, regulated and severely restricted in the kind of risks they are allowed to take. This appeared to be the consensus view of an expert panel of economists, bankers, and financial market veterans.
“It is not going be a traditional banking financial crisis the way we know it. We have known financial crisis from banks before and we have regulated them so much and they are not where the threat is coming from,” said Dusan Stojanovic, founder and director at True Global Ventures.
Instead, he believes that it is the largely unregulated tech sector comprising big technology companies that are getting into financial services that will cause the greatest risk to financial stability.
“Where I see the threat is in five to 10 years when the Facebooks, Googles, Amazons, Tencents, Ant Financials, and Baidus have created a completely dominant position, not only in terms of internet, but what they call in China, internet finance, or techfin,” he explained.
The risk from techfin
David Chang, fintech advisor and vice president of the Shanghai Blockchain Association agrees. He described such techfins as the “barbarians at the gate” that w...
Categories:
Keywords:
