Christine Lagarde, the President of the European Central Bank (ECB), stated that new technologies like artificial intelligence are causing new vulnerabilities in the financial system. Speaking at the annual conference of the European Systemic Risk Board in Frankfurt, Lagarde highlighted that geopolitical changes, the climate crisis, and technological advancements are creating new challenges in macroprudential policy, significantly impacting financial stability. Lagarde emphasized the need for macroprudential policies to adopt and use these technologies in order to reduce the risks brought by new technologies, pointing out that issues related to crypto assets persist. She expressed that the crypto market has weak foundations, inadequate governance, and ineffective verification methods. Lagarde stated that “Artificial intelligence can bring significant benefits to the financial system in the long term.” Lagarde mentioned that artificial intelligence models are used in fraud detection, credit assessment, and portfolio management, noting that recent developments in productive artificial intelligence and increased access to data have led to the rapid spread of this technology. Lagarde acknowledged that artificial intelligence can provide great benefits to the financial system in the long term, but also highlighted the potential of these technologies to create new risks. Lagarde also mentioned that quantum computing, along with artificial intelligence, could have a profound impact on financial systems, emphasizing that such technologies could pose serious threats to encryption-based financial systems.