March 25, 2019
Fintech Is Booming, While Posing New National Security Risks for the U.S.
New financial technology—so-called fintech—has rapidly become an important part of the financial industry, from mobile payment systems to cryptocurrencies. But it also represents a new area of national security vulnerability for the United States. The U.S. is a leader in fintech investment and development for now, but other countries are quickly catching up in key areas. U.S. policymakers should act to improve fintech regulations and coordinate a strategy in order to ensure that this kind of technology remains a strength, rather than a vulnerability, for the U.S.
There has been a huge investment boom in fintech in recent years, with an estimated $111 billion or more invested globally in 2018, according to research from KPMG. Fintech has seen more mainstream use, especially in countries like China, where mobile payments now outstrip any other country in the world—there were over $17 trillion in such payments in China in 2017—and where a range of fintech products are widely used, from peer-to-peer lending platforms to app-based insurance and investment products.
Read the full article in World Politics Review.
More from CNAS
-
Could There Be a Way to Make Economic Sanctions More Mission Oriented?
Podcast
One of the main tools foreign policy leaders have to exert pressure on other governments is through the use of economic tools. Sanctions, export controls, investment restricti...
By Lt Col Mary Hossier
-
Boosting Economic Security Collaboration Among G7 Economies and like-Minded Allies
Commentary
Emily Kilcrease, senior fellow and director of the CNAS energy, economics, and security program, and Geoff Gertz, senior fellow, participated in the T7, the official engagemen...
By Emily Kilcrease & Geoffrey Gertz
-
Ducking Climate Science Is a Danger to the U.S. Military. Congress Must Help.
Commentary
This article was originally published in Breaking Defense. The Trump Administration’s recent decision to revoke the EPA “endangerment finding” is emblematic of a trend in Amer...
By Will Rogers
-
CNAS Insights | Trump's Plan B for Tariffs
Commentary
The administration is already pivoting to a new tariff architecture that will mostly, though not entirely, recreate his previous tariffs....
By Geoffrey Gertz
