Blockchain is a "systemic risk" to the global economy, says DTCC

16 Dec, 2018 | Updated: 16 Dec, 2018
by Will Heasman
Blockchain
Blockchain is a systemic risk to the global economy, says DTCC

A survey undertaken by the United States Depository Trust and Clearing Corporation (DTCC) reveals that fintech, such as blockchain, AI and cloud computing "jeopardize the Safety" of the global economy.

The DTCC uses a “systematic risk barometer survey” to annually assets emerging risks that could potentially affect the safety and stability of the global financial system.

According to respondents of the survey, the #1 main threat to the financial sector is cyber risk with over one-third of survey participants (37%) citing it as a significant risk and a further 69% listing in the top 5 risks.

The DTCC’s managing director and CSO Stephen Scharft elaborated upon concerns:

“The increase in concern around fintech’s impact on systemic risk demonstrates a growing awareness of the potential risk and highlights the need to evaluate both risks and rewards associated with fintech initiatives. DTCC embraces the promise that fintech innovations hold to further mitigate risk and reduce post-trade costs. But 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.”

Strangely enough neither the survey nor Scharft explain how or why fintech such as blockchain technology will adversely impact the global economy, could this simply be an unwillingness to change as is often exhibited by proponents of bygone finance? Who knows. One thing is for certain however, blockchain adoption isn’t slowing down any time soon.

Read more: European Parliament resolution to call for more blockchain in trade; IMF: Cryptocurrency will not impact upon financial stability… Yet

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