First, I will discuss how financial services may be transformed by the adoption of financial technology;
Second, I will examine how crypto-assets rise may pose challenges to financial integrity and stability;
Third, how central banks and regulators can mitigate potential stability risks without impeding innovation;
And finally, I will highlight the work the IMF is doing to help its 189 member countries address these challenges.
He made references to useful services:
"Some useful technology is being developed to improve market efficiency. For example, services have slashed from days to minutes the time it takes for cross-border payments to reach destinations. These include relatively small firms like BitPesa in Africa and BitOasis in the Middle East and such well-known companies as Western Union and Moneygram."
He gives the answer on how regulators and central banks should respond?
First, regulators need to complement their focus on entities with increasing attention to activities. This responds to the reality that an increasingly diverse group of firms and market platforms are providing financial services.
Second, governance needs to be strengthened. Rules and standards will need to be developed to ensure the integrity of data, algorithms, and platforms—in other words, to ensure that they operate in a manner that does not expose consumers or the financial system to undue risk.
Third, policy options could be considered to support open networks, and licensing policies could be adjusted to help foster competition.
Fourth, legal principles need to be modernized. Maintaining trust in financial services may also require the development of new legal frameworks to clarify rights and obligations within the new financial landscape.
They already begun!
"In fact, a group of central banks is actively experimenting with the use of digital currencies and distributed ledger technology with the aim of making cross-border payments more efficient."