I believe a genuine way to address this problem is through the creation of financial sandboxes [1]: controlled environments where regulations are relaxed to promote innovation at a certain scale.
However, current regulations favor banks, making it difficult for new entrants to disrupt the status quo without becoming a bank themselves. This complexity is further compounded by the intersection of regulations and geopolitics, which makes change particularly challenging. Additionally, while lifting regulations can encourage innovation, it must be approached cautiously to avoid potential financial disasters.
However, current regulations favor banks, making it difficult for new entrants to disrupt the status quo without becoming a bank themselves. This complexity is further compounded by the intersection of regulations and geopolitics, which makes change particularly challenging. Additionally, while lifting regulations can encourage innovation, it must be approached cautiously to avoid potential financial disasters.
[1] https://www.fca.org.uk/firms/innovation/regulatory-sandbox