FIGURE 2: FINANCIAL STRESS INDEX 1 JANUARY TO 13 MAY 2026
Source: Office of Financial Research. https://www.financialresearch.gov/financial-stress-index/
“The Évian Summit in June can be a
development of AI. Digital assets and, in particular, crypto assets exhibit remarka- ble volatility, but trading in these markets is largely unsupervised and the risks are unmonitored. Crypto trading con- sumes significant electricity, which can be undermined by long-lasting oil shocks that reduce energy supplies. The impres- sive growth rate of digital finance over the last few years requires clear action by regulators and government, especially to safeguard weak investors. The European Union has introduced some form of reg- ulation of digital financial institutions, with the Market in Crypto Asset regula- tion, but other countries and jurisdictions have decided to leave the digital financial system free to operate and grow. This reg- ulatory asymmetry is to the detriment of investors’ welfare and market stability. To reduce regulatory arbitrage, G7 leaders should agree on a common set of incen- tives for players in the digital financial system. The threats related to AI have been dis- cussed at previous G7 leaders’ summits, most recently at Apulia in 2024 in Italy and Kananaskis in 2025 in Canada. As part of its digital strategy, the European Union has started to supervise and limit the use of artificial intelligence with the AI Act, which comes into force in June 2026. From an economic perspective, the accelerating use of AI poses new chal- lenges; in particular, the massive amount
productive opportunity to relieve global tensions and restore certain diplomatic relationships that have weakened over the last few months”
of investments in the AI sector over the last two years can become a source of sys- temic risk, if the productive capacity does not increase as well. Similarly to the dig- ital financial system, G7 leaders should agree on common principles of a digital strategy for AI.
// CHIARA OLDANI Chiara Oldani is a professor of monetary economics at the University of Viterbo ‘La Tuscia’ and the director of the Rome office of the G7 and G20 Research Groups. Her research focuses on financial innovation and stability.
X-TWITTER @ChiaraOldani
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