The Financial System Is In ‘An Age of Disruption,’ BIS Official Admits

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The world and financial system are in an “age of disruption” according to Benoit Coeure of the Bank for International Settlements( BIS). Innovation Hub.

Coeure spoke at the Geneva Conference on the World Economy, Geneva, Switzerland, on Thursday. He stated that “cryptocurrencies”, the rapid rise in decentralized finance ( DeFi), as well as digital identification systems are all currently disrupting legacy systems.

Although the official at the BIS admitted that new technologies can foster greater efficiency, he also stated that they could lead to financial instability, loss privacy, and financial exclusion.

But, contrary to his claims, decentralized cryptocurrency, such as bitcoin (BTC),, might be the opposite. They offer greater financial privacy and inclusion.

Coeure emphasized the risks associated with stablecoins in both cases. In particular, he cited “global stablecoins”, such as Facebook Diem projects.

French Economist

Further, Cœuré, a French economist who has previously been an executive board member of the European Central Bank (ECB), said that the history of private money “is not a happy read,” and that “private issuers have always chosen profits” whenever conflicts arose between keeping money stable and making money.

“This is where central banks come in,” Cœuré continued by saying, before moving on to explain how a “well-designed” central bank digital currency (CBDC) could become both a “safe and neutral means of payment and settlement” in the time ahead.

Sometimes called ‘the central bank of central banks,’ the BIS is an international financial institution headquartered in Basel, Switzerland. The institution is owned by 62 central banks from around the world, and is led by former Banco de México Governor Agustín Carstens.

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