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seeds of the next financial crisis amid innovation and over-indebtedness
At the World Economic Forum in Davos, experts discussed the potential causes of the next financial crisis, highlighting the risks of over-indebtedness, inflation, and rising interest rates. UBS's Sergio Ermotti cautioned about the speculative nature of cryptocurrencies and their association with criminal activities, suggesting they could contribute to a parallel financial system. Dutch central bank president Klaas Knot noted that while reforms post-2008 have strengthened the financial system, the unpredictability of future shocks remains a concern.
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