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5/29/2017, 3:18 PM (Source: TeleTrader)
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Draghi: Blockchain one of drivers for future growth

The European Central Bank is determined to keep payment systems operation "smooth" while distributed ledger technologies (DLTs), such as the blockchain, rapidly bring innovation necessary for productivity growth, alongside structural reforms, President Mario Draghi said on Monday. The chief rate-setter of the euro area told European parliamentarians in Brussels that cybersecurity concerns are particularly "heightened," while that the economy's "upswing" is solidifying and broadening geographically and across sectors.

"There is a need to constantly monitor and assess potential new or more pronounced risks resulting from the application of new technology such as DLTs to payment, clearing and settlement infrastructures in particular. One such possible risk is an increase in market fragmentation if different DLT approaches were to become firmly established in parallel in different member states," ECB's head stated. 

Draghi claimed "some of the tail risks" from late last year have receded meaningfully, but that core inflation remains subdued, notably from wages, against strong upswing in consumption and investment. Downside risks are prevailingly from overseas, he added. Higher interest rates will come with "a more dynamic economy, over time," the top policymaker said.

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