Digital ledger technologies and crypto-assets have evolved from obscurity to prominence in recent years, bringing with them opportunity and risk. Initially regulators focussed primarily on mitigating risks to consumers but as the applications of the technology have continued to evolve the principle of technological neutrality demands a more adaptive approach. The challenge now is to harness the benefits for EU citizens of scaling up business applications whilst continuing to effectively mitigate the risks. The EBA shows the way.
New players driving fresh business models, innovative products and increased adoption of the power of big data affect not only the provision of financial services but the fundamental structures of financial markets. As the tectonic plates shift, banks need to actively seek and embrace new opportunities. For the data economy to thrive, fintechs and bigtechs to provide client choice without affecting financial stability, and for crypto-assets to provide a viable option to traditional assets, regulators must master the art of balancing innovation with regulation.