Ronit Ghose, Global Head of Future of Finance at Citi Institute, notes: “Finance has already transformed dramatically over the past 30 years, and the evolution continues with blockchain, DLT, and generative AI.” In his book Future Money (March 2024), Ghose argues that AI will soon drive major productivity gains in information management and software development.
Luxembourg for Finance’s inaugural Digital Finance Forum brought together leading figures to discuss key developments in digital finance. What is clear is that digital assets are no longer seen as a threat by traditional financial services, but as an opportunity.
John O’Neill, Global Head of Digital Strategy at HSBC, remarked on the growing investor interest in digital assets: “This shift has been particularly evident in 2024. After a niche experimental phase, many more investors are now involved, and liquidity has grown significantly.” Similarly, Ami Nagata, CEO of Bitflyer Europe, noted that “traditional financial players are entering the cryptocurrency space, now more secure and structured. Regulations such as MiCA (Markets in Crypto-Assets) provide reassurance, which is a very positive development.”
A prime example of this trend is Fnality International, backed by a consortium of 20 global financial institutions, exploring DLT and blockchain’s potential. Fnality’s Founder and CEO, Rhomaios Ram, stresses: “Now is the time for financial players to start their transformation, preparing for blockchain’s widespread adoption. The benefits, particularly the reduction in intermediaries and costs, will be significant.”
This view is shared by Basak Toprak, EMEA Head of Coin Systems at Onyx by J.P. Morgan, who emphasises how digital assets are revolutionising capital markets. She highlighted that tokenisation and blockchain are streamlining settlement processes, reducing transaction costs, and fostering a more interconnected global financial system.
Jochen Papenbrock, Nvidia’s Head of Financial Tech EMEA, highlighted AI’s transformative impact on financial services, particularly in handling vast amounts of data and managing emerging risks. While some major institutions are adopting these technologies, much work remains to fully leverage them.
Regarding regulation, Biba Homsy, Founder and Partner at Homsy Legal, advocated for a gradual approach to crypto regulation: “Regulation is essential, but it must be applied reasonably and evolve gradually. This is still a young industry, barely ten years old.”
At the European level, the Commission is developing PSD3, set for release by 2027. Nadia Manzari, Partner at Boch Manzari Legal, explained: “It aims to clarify the definition of e-money, address open banking, and ensure the continued availability of cash, despite the rise of digital payments.”
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