The global digital revolution that is taking over all spheres of the economy, including financial markets, can lead to resentment and protests from the population, according to a forecast proposed by Anatoly Gavrilenko, head of the Bank of Russia Financial Literacy Experts Board.
“I think some digital neo-Luddites are quite likely to emerge. Every prerequisite for such developments is already in place,” Anatoly Gavrilenko said.
Luddism was a workers’ movement that opposed the industrial revolution, which caused technology-related unemployment in England in the 19th century, the expert explained. Now, in the 21st century, the world is going through a digital revolution, while the majority of the population have limited digital abilities and skills, which accordingly limits their opportunities in the new world.
“The only thing missing is spontaneous protests against the new technologies, including in the financial market,” the expert says.
The least such protests can do is slow down the financial market development and make consumers reject technology when using financial services. There is also a real danger of uncontrolled development and unethical use of technology.
“It is not at all clear how to avoid this,” Gavrilenko added.
The expert shared his forecast at the 6th International Conference on the Protection of the Rights of Consumers of Financial Services, Territory of Financial Security.