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on Payment Systems and Financial Technology |
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Issue of 2021‒01‒11
thirteen papers chosen by |
| By: | MOTOHASHI Kazuyuki |
| Abstract: | Digitalization has a transformative impact on innovation in firms and markets, and new business models based on digital platforms are disrupting traditional industries. However, understanding the impact of digital platforms on the supply side of manufacturing industries, where Japan's industrial competitiveness is based, is insufficient. This paper conducts and discusses a review of existing studies on digital platforms and the relationship between digitalization and Japan's industrial competitiveness. A platform business can be categorized into three groups, type 1 (internet platformer type), type 2 (producer ecosystem type) and type 3 (IoT data-use type), depending on the existence of direct and/or indirect network effects on the producer and consumer sides of the platform. We have compared these three types of platforms together with "pipeline businesses" (with a traditional supply chain model) regarding the impact of digitalization on each business model. Our analysis found that digitalization does not directly affect the existing pipeline model, as is shown in the automotive industry, for example. However, the convergence of virtual and physical environments (CPS: Cyber-Physical System) redefines the boundaries of existing markets, which introduces a chance of existing pipeline models being displaced by new integrated services, based on platform models. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:20029&r=all |
| By: | Marecki, Krzysztof; Wójcik-Czerniawska, Agnieszka |
| Abstract: | The purpose of the article is to show how to use relatively new and very innovative Blockchain technology to improve the food supply chain. In countries such as the United States or Thailand is starting to be an indispensable element in the agri-food sector. At the outset, it should be said what the Blockchain technology is, the use of which is becoming very broad in many sectors of the economy, including in the area of monetary policy of the state. It is used when creating virtual money, i.e. cryptocurrencies, which, despite the controversy they arouse, as well as the world of virtual finance in the COVID-19 era, begin to play a significant role. Blockchain (BCT) in the case of the food supply chain, despite the fact that it is a relatively new digital technology, may revolutionize its functioning. This technology is designed to provide the possibility of storing information in a database of transactions and products, which is decentralized and distributed and not susceptible to changes and manipulations. BCT believes it can play a positive role in ensuring food safety and quality. The main benefit of using this technology is the increased transparency of food supply chains. BCT makes it possible to increase the efficiency of tracking systems and identification of agri-food products in the supply chain. This means that thanks to BTC, it is possible to reduce the number of cases of food adulteration and the unauthorized use of food quality certificates. Nevertheless, BCT, due to the fact that it is a new technology, is not fully developed, i.e. the possibility of scaling BCT may turn out to be ineffective in more extensive and complex supply chains including multi-component products. In addition, it should be remembered that this technology is associated with barriers of a social, economic, legal and financial nature, which may adversely affect the further use of BCT in food supply chains. Despite the growing interest of agri-food sector enterprises in using BCT, its implementation in food supply chains may progress slowly. |
| Keywords: | Agribusiness, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2020–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:haaewp:308135&r=all |
| By: | Toptancı, Ali İskan |
| Abstract: | Blockchain technology is a digital technology that allows distributed, ubiquitous financial transactions between untrusted parties without the need for intermediaries such as banks. This study examines the impact of blockchain technology on the agriculture and food supply chain; It presents current projects and initiatives and discusses the challenges and potential of this technology with a critical perspective on the maturity of these projects. Findings show that blockchain technology is a promising technology in the food supply chain, but there are many obstacles among farmers and systems that prevent this system from working. These challenges include technical aspects, training, policies, and regulatory frameworks. |
| Keywords: | Blockchain Technology,Digital Agriculture,Food Supply Chain,Barriers,Benefits,Challenge |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:228470&r=all |
| By: | Sörries, Bernd; Stronzik, Marcus; Tenbrock, Sebastian; Wernick, Christian; Wissner, Matthias |
| Abstract: | Die Blockchain-Technologie findet heutzutage bereits Eingang in verschiedene Wirtschaftsbereiche. Technisch gehört sie zu den Distributed-Ledger-Technologien, d. h. es wird eine dezentrale Dokumentation von Transaktionen auf mehreren Standorten vorgenommen. Blockchains können in erster Linie dort eingesetzt werden, wo eine verlässliche Nachverfolgung von Daten- und Zahlungsströmen gewährleistet werden soll, Handlungsanweisungen über Smart Contracts ausgeführt und aufgezeichnet werden sollen und viele Akteure beteiligt sind. In diesem Diskussionsbeitrag wird zunächst die grundsätzliche Funktionsweise der Blockchain-Technologie erläutert. Anschließend werden Anwendungsmöglichkeiten im Bereich der Energie- und Telekommunikationswirtschaft aufgezeigt. Im Bereich der Energie zeigt sich, dass vielfältige Anwendungen denkbar sind, die konkrete Umsetzung jedoch noch am Anfang steht. Hier werden verschieden Anwendungsfälle diskutiert: Quartierslösungen, Abrechnung, Netzengpassmanagement und Bilanzkreisbewirtschaftung. Daneben sind weitere Anwendungsfelder denkbar, z. B. im Bereich Elektromobilität, Asset Management, Stromgroßhandel oder Zertifizierung von Energieprodukten. Die Anwendung der Blockchain ist hier als ein dynamischer Prozess zu verstehen, bei dem derzeit noch viele Fragen ungelöst sind und sich die Akteure noch relativ am Anfang befinden. Dies zeigt sich auch dadurch, dass die Blockchain ihren disruptiven Charakter (noch) nicht in der Weise offenbart hat, als dass tatsächlich einzelne Marktrollen bereits obsolet geworden sind. Momentan ist eher zu erkennen, dass sich Marktrollen verändern bzw. neue Aufgaben z. B. für den Netzbetreiber entstehen. Auch im Bereich Telekommunikation zeigen sich verschiedene denkbare Anwendungsbereiche; das Ausmaß der Umsetzung von Blockchain ist aber noch sehr begrenzt. Wenn es aufgrund mangelnder Transparenz und einer hohen Komplexität bestehender Prozesse zu ineffizienten Marktergebnissen kommt, kann Blockchain-Technologie aber theoretisch einen Mehrwert im Telekommunikationssektor bieten. In den Anwendungsfeldern Auslandsroaming und "Internet der Dinge" (Internet of Things, IoT) müssen jedoch noch einheitliche technologische Regeln und Rahmenbedingungen für die Umsetzung entwickelt werden. Sowohl für den Energie- als auch den TK-Sektor ergeben sich weitere, übergreifende Fragestellungen, die es für einen Einsatz der Blockchain zu lösen gilt. Zwei wesentliche sind die Frage nach dem Charakter der Smart Contracts und der Governance im Umfeld einer Blockchain-Lösung sowie die Frage des steigenden Datenvolumens und der Standardisierung unterschiedlicher Blockchains. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wikdps:445&r=all |
| By: | Drydakis, Nick (Anglia Ruskin University) |
| Abstract: | Using panel data on immigrant populations from European, Asian and African countries the study estimates positive associations between the number of mobile applications in use aiming to facilitate immigrants' societal integration (m-Integration) and increased level of integration (Ethnosizer), good overall health (EQ-VAS) and mental health (CESD-20). It is estimated that the patterns are gender sensitive. In addition, it is found that m-Integration applications in relation to translation and voice assistants, public services, and medical services provide the highest returns on immigrants' level of integration, health/mental health status. For instance, translation and voice assistant applications are associated with a 4% increase in integration and a 0.8% increase in good overall health. Moreover, m-Integration applications aided by artificial intelligence (AI) are associated with increased health/mental health and integration levels among immigrants. We indicate that AI by providing customized search results, peer reviewed e-learning, professional coaching on pronunciation, real-time translations, and virtual communication for finding possible explanations for health conditions might bring better quality services facilitating immigrants' needs. This is the first known study to introduce the term 'm-Integration', quantify associations between applications, health/mental health and integration for immigrants, and assess AI's role in enhancing the aforementioned outcomes. |
| Keywords: | mobile applications, m-Integration, m-Health, artificial intelligence, integration, immigrants, refugees, health, mental health |
| JEL: | O3 O31 I1 J15 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13933&r=all |
| By: | Frédéric Marty; Thierry Warin |
| Abstract: | This article demonstrates the inner relationship between gatekeepers and their complementors and the impact of information sharing on the overall market competition intensity and the economic surplus allocation. Several competition law-based cases are grounded on the incompleteness and information asymmetry in which complementors have to make their decisions. In this article, the situation of the complementors is all the more unfavourable when their partnership with the gatekeeper is a durable one. We use a game theory-based model to explain this trajectory. The informational imperfections undermine the bargaining power of the complementors and raise the potential cost of the exit option out of the ecosystem. In this perspective, we envisage regulatory remedies as data portability as proposed by the E.U. Commission Digital Markets Act. |
| Keywords: | Gatekeeper,Keystone Player,Market Dominance,Innovation,Kill Zones, |
| JEL: | L12 L41 L86 |
| Date: | 2020–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2020s-70&r=all |
| By: | Min-Bin Lin; Kainat Khowaja; Cathy Yi-Hsuan Chen; Wolfgang Karl H\"ardle |
| Abstract: | We investigate the relationship between underlying blockchain mechanism of cryptocurrencies and its distributional characteristics. In addition to price, we emphasise on using actual block size and block time as the operational features of cryptos. We use distributional characteristics such as fourier power spectrum, moments, quantiles, global we optimums, as well as the measures for long term dependencies, risk and noise to summarise the information from crypto time series. With the hypothesis that the blockchain structure explains the distributional characteristics of cryptos, we use characteristic based spectral clustering to cluster the selected cryptos into five groups. We scrutinise these clusters and find that indeed, the clusters of cryptos share similar mechanism such as origin of fork, difficulty adjustment frequency, and the nature of block size. This paper provides crypto creators and users with a better understanding toward the connection between the blockchain protocol design and distributional characteristics of cryptos. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2011.13240&r=all |
| By: | Massimo Bartoletti; James Hsin-yu Chiang; Alberto Lluch-Lafuente |
| Abstract: | Lending pools are decentralized applications which allow mutually untrusted users to lend and borrow crypto-assets. These applications feature complex, highly parametric incentive mechanisms to equilibrate the loan market. This complexity makes the behaviour of lending pools difficult to understand and to predict: indeed, ineffective incentives and attacks could potentially lead to emergent unwanted behaviours. Reasoning about lending pools is made even harder by the lack of executable models of their behaviour: to precisely understand how users interact with lending pools, eventually one has to inspect their implementations, where the incentive mechanisms are intertwined with low-level implementation details. Further, the variety of existing implementations makes it difficult to distill the common aspects of lending pools. We systematize the existing knowledge about lending pools, leveraging a new formal model of interactions with users, which reflects the archetypal features of mainstream implementations. This enables us to prove some general properties of lending pools, such as the correct handling of funds, and to precisely describe vulnerabilities and attacks. We also discuss the role of lending pools in the broader context of decentralized finance. |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2012.13230&r=all |
| By: | International Monetary Fund |
| Abstract: | This technical note on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime in France summarizes the findings of a targeted review of France’s AML/CFT framework with respect to measures to prevent and combat terrorist financing (TF), risk-based supervision of banks, real estate agents, company service providers and lawyers, measures to tackle cross-border crimes, and fintech. It provides a factual update on the key measures taken by the authorities since France’s previous assessment. Authorities are recommended to promote stronger AML/CFT controls by enhancing supervision of lawyers and the real estate sector and providing more guidance on cross-border money laundering threats. French banks are employing increasingly sophisticated tools, including machine learning, to carry out their due diligence obligations with respect to TF. More systematic guidance on TF-related indicators and timely feedback may help banks’ detection of potential of TF and to reduce risks of financial exclusion. |
| Keywords: | Anti-money laundering and combating the financing of terrorism (AML/CFT);Crime;Banking;Terrorism financing;Virtual currencies;ISCR,CR,ACPR,bank,CFT obligation,company,CFT control |
| Date: | 2019–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2019/326&r=all |
| By: | Bottasso, Anna; Marocco, Paolo; Robbiano, Simone |
| Abstract: | In this study we investigate the effects of Price Matching Guarantees (PMGs) commercial policies on U.S. online consumer electronics daily prices. By applying a Diff-in-Diff identification strategy we find evidence in favor of price reductions occurring after the PMG policy is repealed. We further investigate if such effect is heterogeneous according to products characteristics, by exploiting User Generated Contents (UGCs, as products popularity and quality) and online search visibility measures (Google Search Rank). Estimates suggest that for high quality (visibility) products PMGs policies harms competition by keeping prices high, while for low quality (visibility) products, prices decrease during the policy validity period. |
| Keywords: | online platforms; price matching guarantees; platform pricing; user generated contents; policy evaluation; counterfactual evaluation |
| JEL: | L00 L10 L11 L41 L81 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104811&r=all |
| By: | Akyildirim, Erdinc (Department of Mathematics, ETH, Zurich, Switzerland and University of Zurich, Department of Banking and Finance, Zurich, Switzerland and Department of Banking and Finance, Burdur Mehmet Akif Ersoy University, Burdur, Turkey); Cepni, Oguzhan (Department of Economics, Copenhagen Business School); Corbet, Shaen (DCU Business School, Dublin City University, Dublin 9, Ireland and School of Accounting, Finance and Economics, University of Waikato, New Zealand); Uddin, Gazi Salah (Department of Management and Engineering, Linköping University, 581 83 Linköping, Sweden) |
| Abstract: | In the aftermath of the global financial crisis and on-going COVID-19, investors face challenges in understanding price dynamics across assets. In this paper, we explore the applicability of a large scale comparison of machine learning algorithms (MLA) to predict mid-price movement for bitcoin futures prices. We use high-frequency intra-day data to evaluate the relative forecasting performances across various time-frequencies, ranging between 5-minutes and 60-minutes. The empirical analysis is based on six different specifications of MLA methods during periods of pandemic. The empirical results show that MLA outperforms the random walk and ARIMA forecasts in Bitcoin futures markets, which may have important implications in the decision-making process of predictability. |
| Keywords: | Cryptocurrency; Bitcoin futures; Machine learning; Covid-19; k-Nearest neighbors; Logistic regression; Naive bayes; Random forest; Support vector machine; Extreme gradient; Boosting |
| JEL: | C60 E50 |
| Date: | 2020–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2020_020&r=all |
| By: | Hacıoglu Sinem (Bank of England - Bank of England, King‘s College London); Diego Känzig (London Business School); Paolo Surico (London Business School, CEPR - Center for Economic Policy Research - CEPR) |
| Abstract: | The top quartile of the income distribution accounts for almost half of the pandemic-related decline in aggregate consumption, with expenditure for this group falling much more than income. In contrast, the bottom quartile of the income distribution has seen the smallest spending cuts and the largest earnings drop but their total incomes have fallen by much less because of the increase in government benefits. The decline in consumers' spending preceded the introduction of the lockdown, whose partial lifting has triggered a stronger recovery in sectors with a lower contact rate. The largest spending contractions are concentrated in the most affluent regions. These conclusions are based on detailed high-frequency transaction data on spending, earnings and income from a large fintech company in the United Kingdom. |
| Keywords: | spending,earnings,income,benefits,heterogeneity,pandemic |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wilwps:halshs-03028702&r=all |
| By: | Luca Benati; Robert E. Lucas Jr.; Juan Pablo Nicolini; Warren Weber |
| Abstract: | We explore the long-run demand for M1 based on a dataset comprising 38 countries and relatively long sample periods, extending in some cases to over a century. The evidence supports the existence of a stable long-run relationship between the ratio of M1 to GDP and a short-term interest rate for a large majority of the countries. The log-log specification provides a good characterization of the data, with the exception of periods featuring very low interest rates. An extension of the theory that imposes limits on the amount households can borrow results in a truncated log-log specification, which is in line with what we observe in the data. We estimate the interest rate elasticity to be between 0.3 and 0.6 |
| Keywords: | Long-run money demand, Cointegration |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:ube:dpvwib:dp2021&r=all |