Search results for Tobias Adrian
AI & Enterprise
Central banks warn of financial risks from agentic AI
European central banks and financial regulators warned that agentic artificial intelligence could increase volatility during periods of financial market stress and urged safeguards. They also said existing regulatory frameworks struggle to keep pace with rapid advances in AI. Bank of England Deputy Governor Sarah Breeden raised the need for mechanisms to limit or halt trading if flawed models trigger a market collapse. European Central Bank President Christine Lagarde cited growing cyber and data risks.
Crypto
IMF says tokenisation could strengthen or fragment financial system
Tokenisation will either strengthen or fragment the financial system depending on policy decisions on money, market infrastructure and legal frameworks, Tobias Adrian said. Moving financial assets and liabilities to a shared ledger compresses execution, clearing and settlement into software-run simultaneous processing, he said. The shift could concentrate risk in platforms, code and market infrastructure providers rather than traditional intermediaries. The IMF report cited tokenised deposits, stablecoins and tokenised central bank reserves.
Crypto
IMF warns tokenised finance could trigger crises faster than central banks can respond
The International Monetary Fund has warned that tokenised finance, while promising lower costs and faster settlement, could trigger financial crises at a pace that makes it hard for central banks to respond. In a report by IMF financial counsellor Tobias Adrian, the IMF described tokenisation as a structural shift in financial architecture. The report flags risks from removing settlement buffers, vulnerability of stablecoins and limited growth in tokenised lending.