ZURICH (Reuters) – Central banks are struggling to cope with the rapidly changing financial technology companies such as Facebook (FB.(O) to move around in finance, a goal to work more closely together to work through the innovation hub was approved on Sunday by the Bank for International settlements.
FILE PHOTO: Euro, Hong Kong dollar, US dollar, Japanese yen, british pound, and 100-yuan banknotes are seen in this picture illustration, January 21, 2016. (REUTERS photo/Jason Lee/Image And/Image
The BIS said that the purpose of the hub, which will be located in Basel, Hong Kong, Hong Kong, and Singapore, with the improvement of the functioning of the global financial system and identify and develop understanding of trends in technology and the influence of the central bank.
Facebook is planning to expand into the payments, and the launch of its very own Scale cryptocurrency and were not included in the LIBRARY declaration, but the social media giant’s move has helped in crystallizing opinion among central bankers on the importance of the co-ordination of the regulatory responses to the financial and technological trends.
“The IT-revolution that has no boundaries and, therefore, has an impact on multiple locations at the same time,” the BIS President, Jens Weidmann, said in a statement after the decision for the creation of the hub at the BIS meeting of the council of ministers.
The hub will focus on the role of the central banks to identify the trends in technology, and with the assistance of these developments, in accordance with their mandates, and keeping abreast of the legal requirements with the objective of safeguarding financial stability,” he added.
The Basel-based BIS, a central bank of the umbrella group, has called on politicians to work closely together to investigate the Large-Tech’s foray into finance, in a move that raises questions about the privacy of your personal data, competition and markets and the banking sector.
Details of the hub were limited, and the BIS is saying that it will not be able to provide you with information regarding the investment or the number of employees.
The Swiss National Bank (SNB), the Hong Kong Monetary Authority and the Monetary Authority of Singapore have all signed up to the initiative.
SNB President Thomas Jordan said the central bank’s efforts in the critical loss of the technology.
“The SNB is keeping a very close track of technological innovation in the financial sector, and to work actively with the national central banks of the community in the identification and assessment of relevant developments at an early stage,” Jordan said.
Report by John Miller; Editing by Alexander Smith