Blockchain could "undermine the security" of the current financial market, DTCC Exec


Fintech is considered a "systemic risk" for the broader economy, according to a survey conducted by the United States Depository Trust and Clearing Corporation (DTCC) on December 11th.

Twenty percent of respondents to the so-called "DTCC Systemic Risk Barometer" identified the fintech among the risks of the global economy system in 2019. Results have increased by 15 percent in last year's survey.

Stephen Scharf, DTCC's Managing Director and Chief Security Officer, said the growing concern about fintech "demonstrates a growing awareness of the potential risk and underlines the need to assess both the risks and benefits associated with the fintech initiatives".

"While the industry continues to adopt fintech innovations, such as blockchain, AI and cloud solutions, we must ensure that such innovations do not jeopardize the security and security of the current global financial market."

Figures in traditional finance have often proved to be wary of the cryptocurrency and the underlying technology, blockchain. As Cointelegraph reported in mid-November, a senior European Central Bank (ECB) executive called Bitcoin "the malewn spawn of the [2008] financial crisis."

This month Andreas Utermann, CEO of the large Allianz investment management company, said that cryptographic assets should be "outlawed" during a panel in London. In the same panel, Andrew Bailey, head of the UK Financial Conduct Authority (FCA), argued that cryptographic resources lack "intrinsic value".

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