The International Monetary Fund (IMF) states: "Bitcoin and cryptocurrencies are shaking up the banking ecosystem."

European Central Bank President Christine Lagarde recently stated in an interview that cryptocurrencies are shaking up the financial banking system, and mentioned that automation of banking processes in the future could potentially replace up to 200,000 job positions.

According to reports, former Managing Director of the International Monetary Fund (IMF) IMF, Christine Lagarde, is set to become the President of the European Central Bank on November 1.

During an interview with CNBC, Lagarde mentioned that innovative digital assets based on blockchain technology are rapidly evolving within the financial system and are having a significant impact on the industry. She stated:

I think that these financial innovations, and anything that is using distributed ledger technology, whether you call it Bitcoin, cryptocurrencies, assets, or currency, is clearly shaking the system.

Lagarde also offered advice on the current situation:

We don't want innovation to shake the entire banking system to the point where it loses the necessary stability.

In addition, Wells Fargo revealed in a recent study that the banking industry is expected to cut 200,000 jobs over the next decade.

According to reports, U.S. financial firms spend $150 billion annually on bank technology, and automation processes will significantly reduce operational costs. Senior Analyst at Wells Fargo Securities, Mike Mayo, noted that employee compensation accounts for more than half of total bank expenses.

Michael Tang, partner at Deloitte, also commented on this:

We're seeing a huge change in business automation. We're seeing this in chatbots for consulting services, some users don't even realize they're chatting with AI.

Many consulting firms and bank executives also anticipate significant job cuts in the banking industry due to automation. Consulting management firm McKinsey stated earlier this year:

Due to the automation of daily business processes, it is expected that the number of main counter staff will be reduced by more than a third.

According to a report from the International Monetary Fund, emerging fintech solutions are rapidly reshaping the industry and causing a global impact. For example, the widespread adoption of mobile payments in Africa and Asia. The report highlights:

Bangladesh, Indonesia, and Pakistan are a few countries making significant progress in mobile payments, with mobile payment accounts surpassing bank accounts in some countries.

However, in the fintech sector utilizing blockchain technology, different regulatory environments in each country need to be navigated. Particularly, Facebook's Libra project is facing continuous obstacles, and PayPal recently withdrew from the controversial Libra project.

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