In a lecture "Money in the digital age: what role for central banks?", BIS general manager Agustin Carstens pulled no punches, calling on financial authorities to ensure that cryptocurrencies do not become entrenched and pose a risk to financial stability, Finextra reports. New technologies hold great promise, for example in making payment systems more efficient. But new currencies are not required for that promise to be realised, he said. Authorities have a duty to make sure technological advances are not used to legitimise the profits from illegal activities, and to educate and protect investors and consumers, Carstens said. Hong Kong's central bank has issued revised guidelines for new banking providers, paving the way for new virtual banks, reports Finextra. New digital banking providers will need at least US$38 million in capital. The first "virtual bank" licenses are expected to be issued by the end of the year, with ten local and overseas firms already expressing interest. In a bid to make it easier for fintech startups, bank regulators in seven US states have agreed to standardise parts of the licensing process for financial services. Currently businesses intending to be a so-called money service business (MSB) and offer services such as money transfers or cryptocurrency trading have to apply individually in each of the 50 US states, reports Finextra. Under the new agreement, if regulators in one of the six states reviews key licensing elements for a new MSB, the other five states will accept the findings. Other US states are expected to join the agreement, as local regulators look to streamline the system of licensing and supervision for fintechs.