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Technological innovation could lead to social fragmentation

Categories : Cash connects people, Cash is the first step of financial inclusion
January 11, 2017
Tags : Electronic, Europe, Fraud, inequality, Payments competition
The Governor of French Central Bank warned against the risks associated with payments innovation.
Guillaume Lepecq

In the opening speech of the “Technological innovations in payments and beyond” Conference, the Governor of the Banque de France, François Villeroy de Galhau warned against the risks associated with payments innovation.

He said “By contrast, the current profusion of new
technologies, standards and protocols that are not fully interoperable,
at least at this stage, constitutes a potential risk of market
fragmentation. Additionally, they could lead to some kind of social
fragmentation, if the new payment means are less accessible to the less

He added that technological innovation “raises challenges in terms of fraud and security, given the multiplication of actors involved in payment and financial processes, the higher circulation of personal data as well as the multiplication of potential “points of failure”.

The full speech is available here.