Magnifica Humanitas §160

¹⁶⁰ In recent years, finance has increased in importance and has undergone significant innovation, driven partly by the introduction of cryptocurrencies. The reflections and observations contained in the teaching of my predecessors, particularly in their Encyclicals, have highlighted how the financial intermediation sector, “when operating without the necessary anthropological and moral foundations, has not only produced manifest abuses and injustice, but also demonstrated a capacity to create systemic and worldwide economic crisis.” It is likewise the case that income from capital risks replacing income from labor, which is often confined to the margins of the economic system’s primary interests. Yet savings transformed into credit for the real economy, thereby creating both jobs and self-employed work, remain central for development and the investments that must accompany ongoing transitions. The social function of credit remains irreplaceable. Finance for its own sake is fundamentally different from finance aimed at the development, creation and evolution of work.