Why the Bank of England governor doesn’t think central banks will be left behind by FinTech

Startups around the world are leveraging technology to transform financial markets, but despite their stellar track-record to date, the governor of the Bank of England is not worried.

Speaking at an IMF panel, Mark Carney said that central banks will still have a huge role to play, despite not being at the “cutting edge of innovation,” CNBC reported.

He argued because the financial system is so heavily regulated, there were lots of ways things could go wrong.

Carney cited innovations in FinTech in China, which he said had created “one of the larger shadow banking bubbles in the world today.”

Keeping that in mind and given the massive risks involved with things going wrong, the Bank of England governor said central banks and regulators would still be needed to ensure things do not fall through the cracks.

For instance, he said central banks would be to remove barriers of entry for FinTech innovators, to ensure a level playing field.

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