The rapid evolution of financial technology is reshaping global economies, with artificial intelligence (AI), blockchain, and digital currencies at the forefront of transformation. In an exclusive interview during the World Economic Forum’s 16th Annual Meeting of New Champions—commonly known as the 2025 Summer Davos Forum—Drew Propson, Head of Financial Services, Technology, and Innovation at the World Economic Forum, shared insights on the future of finance, the rise of AI, and the growing regulatory challenges posed by stablecoins and digital assets.
Propson emphasized that while the full impact of emerging technologies remains uncertain, their influence on financial systems is undeniable. As nations navigate this new terrain, cooperation, innovation, and adaptive regulation will be critical to maintaining financial stability and fostering inclusive growth.
The Rise of Artificial Intelligence in Finance
Artificial intelligence has emerged as the most powerful catalyst for financial innovation. According to Propson, AI sits at the center of attention for stakeholders across the financial ecosystem—from banks and fintech firms to regulators and investors.
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“AI is not just a trend—it’s the dominant force driving change,” Propson stated. “The financial sector has invested approximately $45 billion in AI over the past year alone, surpassing investments in any other industry.” This figure is expected to grow at a compound annual rate of 30%, signaling strong confidence in AI’s long-term potential.
AI applications in finance already deliver tangible benefits. These include automating routine operations, reducing operational costs, enhancing fraud detection through anomaly identification in large datasets, and personalizing customer experiences. For example, AI-powered chatbots and recommendation engines are helping banks offer tailored financial products based on individual user behavior.
Looking ahead, Propson believes the greatest potential lies in leveraging AI to design customized financial solutions that meet specific consumer needs—transforming金融服务 from transactional to advisory in nature.
China’s Leadership in Digital Payments
China stands out as a global leader in fintech innovation, particularly in digital payments. With widespread adoption of platforms like Alipay and WeChat Pay, cashless transactions have become the norm across urban and rural areas alike.
“Mobile payments in China are incredibly advanced,” Propson noted. “People can pay for everything—from groceries to public transit—using just their smartphones. The convenience and efficiency are unmatched.”
This level of digital integration has positioned China as a benchmark for other countries aiming to modernize their payment infrastructures. Beyond payments, China's advancements in AI, big data analytics, and blockchain are drawing international attention, influencing innovation strategies worldwide.
Experts predict that China will continue to lead in digital finance, especially as it expands its central bank digital currency (CBDC), the e-CNY, both domestically and through cross-border pilot programs.
Blockchain and Digital Currencies: Promise and Peril
While AI dominates the innovation landscape, blockchain technology and digital currencies are also gaining momentum. Central bank digital currencies (CBDCs) and private-sector stablecoins are being tested globally, raising both opportunities and concerns.
However, Propson cautioned against drawing definitive conclusions about their macroeconomic impact at this stage. “We’re still in an experimental phase,” he said. “Many projects are underway, but we need time to assess their real-world implications.”
One major concern is the growing use of stablecoins in emerging economies where local currencies face volatility or distrust. In some regions, residents are increasingly turning to dollar-backed stablecoins as a more reliable store of value.
“Stablecoin risk must be treated as a top priority for financial security,” Propson warned. “If people lose faith in their national currency and shift en masse to alternatives they don’t fully understand, it could undermine monetary sovereignty.”
He stressed that consumer trust and cost-effectiveness ultimately determine currency preference. Governments must therefore strengthen confidence in their own monetary systems while ensuring accessibility and low transaction costs.
Toward a Global Regulatory Framework
Regulatory fragmentation remains one of the biggest challenges in managing digital asset risks. Different jurisdictions have varying priorities—some focus on consumer protection, others on economic growth or financial inclusion.
To build a cohesive global approach, Propson recommended starting with existing international standards, particularly those set by the Financial Action Task Force (FATF). The FATF has issued guidance on anti-money laundering (AML) and countering terrorist financing (CFT) in relation to virtual assets, offering a solid foundation for national regulators.
“Cross-border cooperation is essential,” he said. “Countries should learn from early adopters, share best practices, and work together to develop interoperable frameworks.”
Public-private collaboration is equally important. Regulators need ongoing dialogue with innovators to stay ahead of technological change without stifling progress.
Regulating AI: Balancing Innovation and Risk
Just as with digital currencies, regulating AI presents complex trade-offs. Some jurisdictions aim to foster cutting-edge innovation—even accepting short-term failures—while others prioritize risk mitigation and stability.
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“There’s no one-size-fits-all strategy,” Propson explained. “The speed of AI development means regulators themselves struggle to keep pace.” During a private WEF session at the 2025 Summer Davos Forum, industry leaders from banks and fintech firms agreed that adapting to AI’s rapid evolution is now a universal challenge.
Nonetheless, Propson highlighted the importance of ethical AI deployment—ensuring transparency, accountability, and fairness in algorithmic decision-making, especially in credit scoring, lending, and insurance.
Frequently Asked Questions
Q: Why is AI considered the biggest driver of financial innovation?
A: AI enables automation, enhances fraud detection, reduces costs, and personalizes services at scale. With over $45 billion invested annually in financial AI, its transformative impact exceeds that of other technologies.
Q: Can stablecoins replace national currencies?
A: While stablecoins are gaining traction in unstable economies, they pose risks to monetary sovereignty. Their widespread adoption depends on public trust, regulatory oversight, and whether they offer clear advantages over local currencies.
Q: How can countries regulate digital assets effectively?
A: By adopting international standards like FATF guidelines, promoting cross-border cooperation, and engaging in public-private partnerships to balance innovation with consumer protection.
Q: Is China’s digital payment model replicable elsewhere?
A: Elements of China’s success—such as mobile-first design and ecosystem integration—can inspire other markets. However, cultural habits, infrastructure readiness, and regulatory environments play key roles in adoption.
Q: What role does the World Economic Forum play in shaping fintech policy?
A: The WEF facilitates global dialogue among governments, regulators, and private firms to develop responsible innovation frameworks for AI, blockchain, and digital currencies.
Q: Should all countries develop a central bank digital currency?
A: Not necessarily. Each nation must assess its financial infrastructure, privacy concerns, and economic goals before pursuing a CBDC. Pilots and phased rollouts help evaluate feasibility.
Final Thoughts
As financial systems become increasingly digital, the interplay between technology, regulation, and consumer behavior will define the future of money. AI leads the charge in innovation, but its power must be matched with thoughtful governance.
Meanwhile, stablecoins and blockchain present both disruptive potential and systemic risks—necessitating global coordination rather than isolated national responses.
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The path forward requires collaboration, agility, and a shared commitment to building resilient, inclusive financial ecosystems for the 21st century.