According to the president of Consob, to guarantee rational management of savings it is desirable to move from investment choices based on traditional techniques or predominantly subjective evaluations to choices based on modern artificial intelligence techniques and information collection and processing tools, to promote a greater net return on savings
“In the foreseeable future, money and financial activities will complete the dematerialization process, moving from digital forms with centralized accounting to those with decentralized accounting (DLT). Full use will depend on unraveling the knots with which it will be possible to exercise supervision over this form of ownership of wealth and guarantee the inalterability of the platforms that record and store it (cyber security)”. That’s what he said Paolo Savona, president of Consob (National Commission for Companies and the Stock Exchange), during yesterday’s annual meeting with the financial market, at the headquarters of the Italian Stock Exchange.
“To ensure rational management of savings, it is desirable to move from investment choices based on traditional techniques or predominantly subjective evaluations to choices based on modern artificial intelligence techniques and information collection and processing tools, to encourage greater net remuneration of the savings, encouraging the desired channeling towards productive initiatives“, he added.
According to Savona, “the main advantage of introducing the institutional specializations and technological innovations indicated would be that the choices of monetary stability of quantity and interest rate would develop independently from the needs of banking stability, overcoming the reciprocal constraint in the current institutional architecture; the historically subordinate position of financial stability to monetary stability, which originated in the preponderant role played by banks on the savings market compared to other intermediaries, including stock exchanges, would cease”.
The president of Consob believes that by doing so. “official interest rates would fully perform the function, highlighted by economic theory and practical experience, of rebalancing between trends in the profits of real investments and aggregate demand”.
Speaking about the effects for the Eurosystem, he stated that “the creation and use of the euro would remain under the direct control of the ECB, whose accounting could be taken as the basis for the management of all payments, including those linked to financial transactions of all kinds. This would open up the possibility that the widespread use of this specific technology would favor a closer “market” connection between national currencies and an international agreement on the rules of state intervention in the setting of exchange rates, one of the most widespread forms of protectionist policies.” .
The implementation of these institutional changes which, Savona reiterated, are intrinsic to the evolutionary nature of technologies and markets, “they will require time and obvious application precautions; However, it would not be rational behavior if we continued to proceed with partial realizations without knowing where the monetary and financial system is moving towards, because the uncertainty of the future would continue to prevail, increasing the complexity of governing mixed public and private economies, increasingly involved in the aforementioned changes in the geopolitical scenario”.
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 awaits the completion of the process of dematerialization of money and financial assets){kind=link}