nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2017‒08‒20
eight papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. qBitcoin By Kazuki Ikeda
  2. Some stylized facts of the Bitcoin market By Aurelio F. Bariviera; Mar\'ia Jos\'e Basgall; Waldo Hasperu\'e; Marcelo Naiouf
  3. FinTech and Financial Innovation : Drivers and Depth By John W. Schindler
  4. An Instruments to Develop Cashless in Malaysia By Taasim, Shairil; Yusoff, Remali
  5. Social representations of money: Contrast between citizens and local complementary currency members By Ariane TICHIT
  6. Media See-saws: Winners and Losers in Platform Markets By Anderson, Simon P; Peitz, Martin
  7. Dotcom Price Spiral By Pinheiro, Roberto; de Carvalho, Antonio Gledson; Sampaio, Joelson Oliveira
  8. The labyrinth of the informal economy: measurement strategies and impacts By Victor Adame; David Tuesta

  1. By: Kazuki Ikeda
    Abstract: A decentralized online quantum cash system, called qBitcoin, is given. We design the system which has great benefits of quantization in the following sense. Firstly, quantum teleportation technology is used for coin transaction, which prevents an owner of a coin from keeping the original coin data after sending the coin to another. This was a main problem in systems using classical information and a blockchain was introduced to solve this issue. In qBitcoin, the double-spending problem never happens and its security is guaranteed theoretically by virtue of quantum information theory. Making a bock is time consuming and the system of qBitcoin is based on a quantum chain, instead of blocks. Therefore a payment can be completed much faster than Bitcoin. Moreover we employ quantum digital signature so that it naturally inherits properties of peer-to-peer (P2P) cash system as originally proposed in Bitcoin.
    Date: 2017–08
  2. By: Aurelio F. Bariviera; Mar\'ia Jos\'e Basgall; Waldo Hasperu\'e; Marcelo Naiouf
    Abstract: In recent years a new type of tradable assets appeared, generically known as cryptocurrencies. Among them, the most widespread is Bitcoin. Given its novelty, this paper investigates some statistical properties of the Bitcoin market. This study compares Bitcoin and standard currencies dynamics and focuses on the analysis of returns at different time scales. We test the presence of long memory in return time series from 2011 to 2017, using transaction data from one Bitcoin platform. We compute the Hurst exponent by means of the Detrended Fluctuation Analysis method, using a sliding window in order to measure long range dependence. We detect that Hurst exponents changes significantly during the first years of existence of Bitcoin, tending to stabilize in recent times. Additionally, multiscale analysis shows a similar behavior of the Hurst exponent, implying a self-similar process.
    Date: 2017–08
  3. By: John W. Schindler
    Abstract: This paper answers two questions that help those analyzing FinTech understand its origins, growth, and potential to affect financial stability. First, it answers the question of why "FinTech" is happening right now. Many of the technologies that support FinTech innovations are not new, but financial institutions and entrepreneurs are only now applying them to financial products and services. Analysis of the supply and demand factors that drive "traditional" financial innovation reveals a confluence of factors driving a large quantity of innovation. Second, this paper answers the question of why FinTech is getting so much more attention than traditional innovation normally does. The answer to this question has to do with the 'depth' of innovation, a concept introduced in this paper. The deeper an innovation, the greater the ability of that innovation to transform financial services. The paper shows that many FinTech innovations are deep innovations and hence have a greater potential to change financial services. A greater potential to transform can also lead to a greater chance of affecting financial stability.
    Keywords: FinTech ; Financial innovation
    JEL: G10 G18 G28
    Date: 2017–08–10
  4. By: Taasim, Shairil; Yusoff, Remali
    Abstract: This study aims to apply the technology assessment (TA) model to analyze ebanking perceptions in the context of Malaysia. It involves aspects of supply and demand to understand increasing cashless concept in the country. A sample of 470 respondents were randomly selected from high density state capitals and major cities, using the convenience sampling method. Respondents were requested to complete a questionnaire developed from the basic model by forming UTAUT constructs, including quality, skills, transaction costs, user satisfaction, role of service providers (banks), and the influence of environment. Based on the results obtained, the model suggests that transaction costs, as direct costs by service providers, have a significant impact on the overall assessment of the performance of retail e-banking. Data analysis was performed using structured equation modeling (SEM), with the use of AMOS V22 as a method of trajectory analysis.
    Keywords: Technology, SEM, Performance, e-banking.
    JEL: G0 G00 O1 O16
    Date: 2017–03–01
  5. By: Ariane TICHIT (Centre d'Etudes et de Recherches sur le Développement International(CERDI))
    Abstract: This article analyses the social representations of money from survey data. More specifically, it tests how organizers of a complementary currency system have a distinct perception of money compared to other citizens. The main results confirm the existence of significant differences between the two groups. The structure of their representations shows that for the local currency members money is less tied to official institutions, to the symbol of the sovereign State, to labour and to wages than for the representative population segment. This confirms a number of theoretical studies that see these social innovations as forms of protest against the standard system, questioning the sovereign State currency and close to the concept of unconditional income. Local currencies, through the different social representations of money they contain, could well be drivers of societal change.
    Keywords: Social representations of money, Survey data, Abric method, Complementary currencies.
    JEL: Z13 E42
    Date: 2017–08
  6. By: Anderson, Simon P; Peitz, Martin
    Abstract: We customize the aggregative game approach to oligopoly to study media platforms which may differ by popularity. Advertiser, platform, and consumer surplus are tied together by a simple summary statistic. When media are ad-financed and ads are a nuisance to consumers we establish see-saws between consumers and advertisers. Entry increases consumer surplus, but decreases advertiser surplus if industry platform profits decrease with entry. Merger decreases consumer surplus, but advertiser surplus tends to increase. By contrast, when platforms use two-sided pricing or consumers like advertising, advertiser and consumer interests are often aligned.
    Keywords: advertising; Aggregative games; Entry; Media economics; mergers
    JEL: D43 L13
    Date: 2017–08
  7. By: Pinheiro, Roberto (Federal Reserve Bank of Cleveland); de Carvalho, Antonio Gledson (Fundação Getulio Vargas, School of Business at São Paulo); Sampaio, Joelson Oliveira (Fundação Getulio Vargas, School of Economics at São Paulo)
    Abstract: We show that during the bubble implied growth rates coming from the underpricing of IPO market explains short term returns on the NASDAQ index. This result remains even if we replace actual underprice for others different instruments for underpricing that are based on predetermined variables and not correlated to market returns. We also do placebo tests to assess the relation between underpricing and NASDAQ returns over other periods. We show that growth proxies that are not contaminated by the booms and busts of the stock market are uncorrelated with the returns on the NASDAQ index in periods outside the bubble.
    Keywords: Internet bubble; underpricing; spinning; analyst lust; risk composition hypothesis;
    JEL: G14 G24 L1 O33
    Date: 2017–07–25
  8. By: Victor Adame; David Tuesta
    Abstract: One of the factors of the greatest upheaval to a country’s economic prospects is the substantial presence of the informal economy. The aim of this paper is to articulate a detailed statistical approach to identify the significance of such factors by examining key econometric strategies and availing ourselves of several different samples for over 160 countries.
    Keywords: Financial Inclusion , Global , Working Paper
    JEL: O17 E26
    Date: 2017–08

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