by Sandra Švaljek

In recent years, we have seen many negative global developments, such as lockdowns, restrictions, supply chain bottlenecks, aggression in Ukraine, oil price shock and sanctions. On the positive side, technology is constantly changing and evolving, revolutionising how we live and work owing to pronounced advancements in computing power, AI and machine learning, 5G technology and cloud computing. It all profoundly affects how we perceive money. So, the name of this conference  precisely depicts the evolving and shape-shifting nature of money due to these developments. While the diffusion of technologies is accelerating as well, it is precisely in the area of payments where it is the most rapid. We are still determining what this will bring and which form the money will eventually take. Are we going to see the decline in the dominance of one global currency and its replacement by a new one or the formation of an alliance between currencies? Will it be the dominance of technology companies in providing payment services to the general public?
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On September 28, the Commission adopted two proposals to adapt liability rules to the digital age, circular economy and the impact of global value chains. Firstly, it proposes to modernise the existing rules on the strict liability of manufacturers for defective products (from smart technology to pharmaceuticals). The revised rules will give businesses legal certainty so they can invest in new and innovative products and will ensure that victims can get fair compensation when defective products, including digital and refurbished products, cause harm. Secondly, the Commission proposes for the first time a targeted harmonisation of national liability rules for AI, making it easier for victims of AI-related damage to get compensation. Continue reading…

by Nigel Cannings

Financial Institutions that fall foul of compliance regulations were fined $2.7 billion in 2021 globally, according to Forbes. This included violations of Anti-Money Laundering (AML) rules, Know Your Customer (KYC) checks and operating guidelines. As financial regulation increases to ensure the safety and security of the financial system and to protect consumers, financial institutions must consider how they can best protect themselves from compliance-related fines. Continue reading…

Banks are increasingly exploring opportunities for using artificial intelligence and machine learning (AI/ML). AI/ML technology is expected to increase banks’ operational efficiency and also facilitate improvements in risk management. While significant opportunities are emerging from the increasing use of AI/ML in many areas of banking, there are also risks and challenges associated with these techniques. Banks are still in the process of developing best practices for risk management. Given the increasing adoption of this technology as well as the potential risks, the Committee is analysing banks’ use of AI/ML and potential implications for bank supervision. Continue reading…

Dr. Sabine Mauderer, Member of the Executive Board of the Deutsche Bundesbank, recently gave a speech on 14 September 2021 at the International Conference on Statistics for Sustainable Finance, jointly organised by the Bank of France, Deutsche Bundesbank and the Irving Fisher Committee on Central Bank Statistics, Paris. She was delighted to be there. It gave her the opportunity to talk about two subjects close to her heart: Sustainable finance and the availability of good quality data. Many of us laughed when – almost ten years ago – the Harvard Business Review proclaimed that ‘data scientist’ would be the sexiest job of the 21st century. But as we all know, statistics and data have been growing in importance all the time, propelled by fascinating technological changes. Continue reading…

by Michel Klompmaker

We recently spoke with Arnoud Engelfriet in the heart of Amsterdam about Lynn Legal’s legal tech solution. Lynn Legal is actually a kind of cross between a modern IT company and a legal consultancy. Founders Arnoud Engelfriet and Steven Ras (see photo from left to right) are convinced that legal processes can be organised more intuitively and efficiently thanks to the application of modern technology. Their lawyer bots have already reviewed more than 14,000 NDAs and more than 1,000 data processing agreements since the beginning of 2021. In total, more than 50,000 legal problems have been spotted and resolved. We spoke with Arnoud about the background, the present and the future. Continue reading…

EU Commissioner Didier Reynders recently spoke at the 2021 Transatlantic Conference. The participation of President Biden to the European Council showed how deep the alliance between the European Union and the United States is. We have a common willingness to work together to address the key challenges of our times: from the pandemic to the green transition. The recent visit of US Special Presidential Envoy for Climate, John Kerry, was a chance to discuss how to achieve our common objectives of a greener and cleaner future for all citizens. The U.S. trillion dollar recovery package focuses on green investment. It has similar priorities to the prior established European Green Deal. The digital transition requires the same commitment.
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The new president of the European Commission, Ursula von der Leyen, has sworn to acquaint GDPR-style legislation to oversee artificial intelligence (AI). Ursula von der Leyen has made the following comments on this pledge by stating, “With the GDPR, we set the pattern for the world. We have to do the same with artificial intelligence. It is not about damming up the flow of data. It is about making rules that define how to handle data responsibly. For us, the protection of a person’s digital identity is the overriding priority.”
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The European Commissioner for Digital Economy Mariya Gabriel announces an ambitious target to increase EU competitiveness in AI and try to catch up with the China and US in terms of investment. She proposed an investment objective of € 20 billion annually for the period 2021-2027, using the new EU funding programmes Horizon Europe and Digital Europe.
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The Board of the Bank for International Settlements (BIS) approved the establishment of a BIS Innovation Hub to foster international collaboration on innovative financial technology within the central banking community complementing the already well established cooperation within the existing committees. The role of the Hub will be to identify and develop in-depth insights into critical trends in technology affecting central banking; develop public goods in the technology space geared towards improving the functioning of the global financial system; and serve as a focal point for a network of central bank experts on innovation.

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