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on Payment Systems and Financial Technology |
By: | Jon Durfee; Michael Junho Lee; Joseph Torregrossa; Sarah Wang |
Abstract: | In a previous post, we introduced a three-pillar framework for interoperability of payment systems and discussed how technological, legal, and economic factors contribute to achieve interoperability and aid in the “singleness of money”—that payments and exchange are not subject to volatility in the value of the money itself—in the context of legacy systems. In this post, we use the framework to characterize the interoperability of blockchain systems and propose a methodology for evaluating interoperability. We show evidence of limited interoperability and draw insights for the future of payment systems. |
Keywords: | interoperability; blockchain; stablecoins; singleness of money; future of payments |
JEL: | E41 E42 |
Date: | 2025–03–27 |
URL: | https://d.repec.org/n?u=RePEc:fip:fednls:99738 |
By: | Jon Durfee; Michael Junho Lee; Joseph Torregrossa |
Abstract: | Novel payment systems based on blockchain networks promise to redesign financial architecture, but a notable concern about these systems is whether they can be made interoperable. This concern stems from the concept of the “singleness of money”—that payments and exchange are not subject to volatility in the value of the money itself. Volatility and speculation can arise from the payment medium, which may have speculative characteristics, or from frictions that undermine the ability of one or more payments systems to interoperate. In this two-part series, we outline a framework for analyzing payment system interoperability, apply it to traditional and emerging financial architectures, and relate it to the ability of the payment systems to maintain singleness of money. |
Keywords: | interoperability; payments; singleness of money; central banks |
JEL: | E5 O3 |
Date: | 2025–03–27 |
URL: | https://d.repec.org/n?u=RePEc:fip:fednls:99737 |
By: | Alistair Milne; Vivienne Lawack |
Abstract: | This paper defines digital assets as those directly controlled through public-private key cryptography. It distinguishes code-based (crypto) digital assets without intermediaries from intermediary-based digital assets where one intermediary or more validates transfers. The paper argues that regulatory objectives are best served by crypto-asset separation: regulated financial intermediaries can either be crypto-asset service providers or provide other regulated financial services, but they should not do both. Efficient automated processing of financial transactions can be achieved through either replacing traditional financial assets with intermediary-based digital assets or retaining existing arrangements, standardising data and processes and using application programming interfaces (APIs) to support secure automated data exchange. Similar outcomes can thus be achieved with or without digital assets. In a middle-income country context, many of the asserted benefits of retail financial services lower cost and risk, greater speed and heightened transparency can be better achieved with traditional financial assets. Intermediated digital assets may however offer worthwhile reductions of cost and risk in financial markets. |
Date: | 2024–11–26 |
URL: | https://d.repec.org/n?u=RePEc:rbz:wpaper:11073 |
By: | Julian A. Parra-Polania; Constanza Martínez-Ventura |
Abstract: | We examine the optimal design of central bank digital currencies (CBDCs) by focusing on two key features: the anonymity-security trade-off and the remuneration (i.e., interest rate). Building on the extended model by Agur et al. (2022), which accounts for potential negative externalities associated with the anonymity of payment methods, we incorporate the possibility of multiple CBDCs into the framework. Our findings reveal that with optimally designed CBDCs and when anonymity costs are significant, a cashless economy is the preferred choice for the central bank. Furthermore, irrespective of anonymity costs, an economy with cash and one or more CBDCs is welfare dominated by a cashless economy with one additional CBDC. These results underscore the exibility and welfare-enhancing potential of CBDCs compared to cash in modern payment systems. **** RESUMEN: Analizamos el diseño óptimo de las monedas digitales de los bancos centrales (CBDC), centrándonos en dos características clave: la disyuntiva entre anonimato versus seguridad y la remuneración (tasa de interés). Con base en el modelo extendido de Agur et al. (2022), que considera las posibles externalidades negativas asociadas con el nivel de anonimato de los métodos de pago, incorporamos la posibilidad de múltiples CBDCs. Nuestros hallazgos revelan que con CBDCs óptimamente diseñadas, y cuando los costos de la anonimato son relativamente altos, una economía sin efectivo es la opción preferida del banco central. Adicionalmente, independientemente de los costos de la anonimato, una economía con efectivo y una o más CBDCs es menos preferida, en términos de bienestar social, que una economía sin efectivo y con una CBDC adicional. Estos resultados resaltan la flexibilidad y el potencial de mejora del bienestar de las CBDCs en comparación con el efectivo en los sistemas de pago modernos. |
Keywords: | CBDC, optimal design, anonymity, security, digital currency, cashless economy, CBDC, diseño óptimo, anonimato, seguridad, monedas digitales, economía sin efectivo |
JEL: | D60 E41 E42 E43 E58 G21 |
Date: | 2025–04 |
URL: | https://d.repec.org/n?u=RePEc:bdr:borrec:1311 |
By: | Georgarakos, Dimitris; Kenny, Geoff; Laeven, Luc; Meyer, Justus |
Abstract: | We field a series of experiments in a population-representative survey of European consumers to examine their attitudes towards the possible introduction of a digital euro. First, we show that a short video explaining the key features of the digital euro is effective in changing consumers’ beliefs about such a new form of payment and increases the likelihood of adoption by 12pp relative to a control group that is not shown the video. Second, we find that on aggregate consumers would allocate a relatively small fraction from a positive wealth shock to digital euros and their allocation to other liquid assets would be little affected. Third, holding limits in the range of €1, 000 to €10, 000 have insignificant differential effects on the composition of liquid asset holdings. We also show that a non-trivial fraction of consumers report that they will not adopt the digital euro due to strong preferences for existing forms of payment. JEL Classification: E41, E58, D12, D14, G51 |
Keywords: | Central Bank Digital Currencies (CBDC), consumer expectations survey, household expectations, household finance, money, payments, Randomized Control Trial (RCT) |
Date: | 2025–03 |
URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253035 |
By: | Bogdan Stanišic (National Bank of Serbia) |
Abstract: | Payment using cashless payment instruments, such as payment cards or instant payments, is a process familiar to all users of these payment instruments in Serbia. When making a payment, all the customer needs to do is to tap, insert, or swipe the card through a POS terminal, or display or scan an IPS QR code, and the transaction will be executed. On the other hand, the service of accepting these and similar payment instruments is not widely known to the public, at least not to the same extent as the statistical data related to cashless payments. Understanding the processes that occur in the background and the participants involved is of great importance for setting more efficient hypotheses and making better decisions regarding enabling the acceptance of cashless payment instruments. The explanation of the basic elements related to the acceptance of payment instruments in this paper aims to provide additional information based on which the wider and professional public can better understand the process of accepting cashless instruments, their possibilities, and characteristics. The information provided can help merchants and other market players in making adequate and optimal business decisions when it comes to the method of accepting and using cashless payments. The paper describes the infrastructure that a merchant can use when accepting cashless payments, the payment instruments most commonly used by consumers in Serbia, specific business models, the roles of payment service providers in the overall acceptance process, as well as the transaction flow initiated by different payment instruments. This way, all interested market participants, especially merchants, can take a broader view of the cashless payment acceptance system and independently draw comprehensive conclusions about the costs, type of instrument, and acceptance model they are considering. |
Keywords: | payments, payment services, cards, mobile phones, IPS, acceptance, development, digitalisation, National Bank of Serbia, Serbia |
JEL: | F30 G15 G20 G30 |
Date: | 2025–03 |
URL: | https://d.repec.org/n?u=RePEc:nsb:bilten:31 |
By: | Michael Peneder; Sandra Bilek-Steindl; Susanne Bärenthaler-Sieber (WIFO); Julia Bock-Schappelwein; Alexandros Charos (WIFO) |
Abstract: | Online platforms have evolved into powerful programmable architectures that enable heterogeneous groups of autonomous but interdependent users to interact. Based on a stratified sample of 1, 380 companies from a newly developed enterprise survey in Austria, the analysis aims to reduce the lack of comprehensive empirical research of the general patterns and regularities of business use of online platforms across different markets and industries. We conduct a comprehensive set of (ordered) probit estimations on the determinants of platform adoption, their interaction with platform competition, their joint impact on platform users, and their overall satisfaction and willingness to pay (more) for platform services. The analysis provides ample empirical evidence of the importance of rivalry between platforms for delivering its value proposition to all participants: for instance, the estimates show that more competing platforms imply (i) greater ease of switching, (ii) a greater likelihood of negotiable and favourable terms of use, and (iii) associate positively with a greater impact on the number of business partners, revenue per customer or product variety. In turn, (iv) better impacts for business users go hand in hand with their higher satisfaction, which directly links to (v) a higher willingness to pay (more) for platform services. Conversely, the ease of switching to an alternative platform associates with a significantly lower willingness to pay (more). Competition between platforms thus increases the bargaining power of users and allows them to claim a larger share of the platform's value proposition. |
Date: | 2025–04–06 |
URL: | https://d.repec.org/n?u=RePEc:wfo:wpaper:y:2025:i:701 |
By: | Masataka Mori; Juan M. Sanchez |
Abstract: | An analysis of 2022 survey data found that only about 4.3% of U.S. households owned cryptocurrency and an even smaller proportion held large amounts. |
Keywords: | cryptocurrencies |
Date: | 2025–03–11 |
URL: | https://d.repec.org/n?u=RePEc:fip:l00001:99689 |
By: | Lwanga Elizabeth Nanziri; Paul Terna Gbahabo |
Abstract: | This paper examines the potential of agency banking to deepen financial inclusion in South Africa. Using the three-stage least squares and logistic estimation techniques on three samples of adults drawn from the 2015 and 2023 FinScope surveys, and the 2021 Global Findex, our results show a positive and significant role played by agency banking in increasing the frequency of the use of credit, savings and bank transaction services. The associated demand for agency banking is driven by demographic, geographic and behavioural factors. Furthermore, our study identifies poverty, know-your-customer restrictions and a lack of trust in financial institutions as significant factors influencing the demand for agency banking services. However, the overall effect of agency banking on financial inclusion seems to be dissipating. Our nuanced analysis of demographic variations shows the need for a strategic approach to policy interventions that address specific barriers faced by different segments of South Africas population in accessing financial services. |
Date: | 2025–01–13 |
URL: | https://d.repec.org/n?u=RePEc:rbz:wpaper:11075 |
By: | Abu Sayed Toyon, Mohammad |
Abstract: | As the world continues to navigate the new normal brought about by the COVID-19 pandemic, one issue that has come to the forefront is digital inequality. In Bangladesh, where a significant portion of the population resides in rural areas, the adoption of internet banking has been hindered by various factors. However, understanding these factors is crucial, especially now that digital transactions have become more important. This study aims to understand the factors influencing the adoption of internet banking services among rural customers in Bangladesh. To acquire data, a questionnaire was administered to 443 rural bank customers in the district of Barisal. The Exploratory Factor Analysis (EFA) revealed three primary factors: trust compatibility, service benefit, and access to consumer education. In addition, the research sought to determine if the identified factors, particularly access to consumer education, varied according to the occupation and income level of rural consumers. Using exhaustive Chi-squared Automatic Interaction Detection (CHAID) analysis, the findings revealed that access to consumer education differs significantly by occupation level, with business and service holders being more likely than farmers to have access to consumer education. This research contributes to the literature by providing insights into the adoption of internet banking by rural customers and informing policymakers about the special needs of this demographic. |
Date: | 2023–04–29 |
URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:h76k8_v1 |
By: | Gaar, Eduard; Moritz, Valentin; Schiereck, Dirk |
Abstract: | As a result of technological innovations in data processing, the exploitation of Internet usage data in relation to search engines or social networks is becoming increasingly intriguing for understanding and anticipating stock market movements. We analyze the impact of three alternative investor attention variables, i.?e. Google search volume, Wikipedia page views, and stock market-relevant news on the rapidly growing FinTech sector. The result of the simultaneous correlation analysis reveals a highly significant correlation between the trading activities of the FinTech sector and the three investor attention variables. The time-delayed regression analysis complements the results by identifying substantial changes of the effects within one week considering the order of magnitude and sign. Furthermore, multivariate regression analysis highlights that the explanatory power for future stock trading activities and illiquidity primarily depends on Google search volume and stock market-relevant news volume, while the simultaneous correlations are best explained by the number of visits to the corresponding Wikipedia page. |
Date: | 2025–03–18 |
URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:153634 |
By: | Patrick T. Harker |
Abstract: | Speaking at today’s Fintech and Financial Institutions Conference, Federal Reserve Bank of Philadelphia President and CEO Patrick Harker stated that “the explosion of fintech options has been nothing short of a sea change in how we look at, interact with, and even conceive of money.” In the context of the Fed’s role to ensure a sound financial system, Harker emphasized the opportunities and challenges of rapidly evolving technologies. As fintech options proliferate, Harker noted “we have an opportunity to look anew at how new fintech applications are constructed, how they intend to operate, and which systems they intend to improve upon if not replace outright.” |
Keywords: | Fintech |
Date: | 2025–04–10 |
URL: | https://d.repec.org/n?u=RePEc:fip:fedpsp:99811 |
By: | Arthur Campbell (Department of Economics, Monash University, Australia); Geoffrey Go (Commonwealth Treasury, Australia); Chengsi Wang (Department of Economics, Monash University, Australia) |
Abstract: | Content creators produce original work, while digital platforms share secondary versions to generate ad revenue, often without compensating them. This imbalance may reduce incentives for creating high-quality content, leading to government interventions aiming to re-balance the bargaining strengths. This paper examines how enhancing content creators' bargaining strength affects investments in primary and secondary content and subscription prices. While it directly boosts secondary content quality, the intervention's impact on primary content is ambiguous due to the opposite awareness and pricing effects. Cannibalization between primary and secondary contents may contribute to or impede quality improvement. These dynamics hold across subscription and advertising-based models and the analysis extends to two-sided investments. |
Keywords: | advertising, online platforms, content sharing, journalism. |
JEL: | L52 L82 |
Date: | 2025–04 |
URL: | https://d.repec.org/n?u=RePEc:mos:moswps:2025-04 |
By: | Chimwemwe Chipeta; Lerato Mapela |
Abstract: | We examine the effects of the implementation of the Basel III accord on the growth of non-bank financial institutions and fintech platforms in South Africa. Using a difference-in-difference estimation procedure, we find evidence of regulatory arbitrage, suggesting that the imposition of minimum capital requirements results in the growth of deposit-taking non-bank financial institutions. Our results are robust to alternative event windows and falsification tests. In contrast, country-level estimations show that tighter minimum capital restrictions constrain the growth of fintech platforms in South Africa, while innovation plays a crucial role in driving the growth and funding of fintech ventures in select African economies. Our results highlight the need for targeted policies that enable and sustain a vibrant fintech ecosystem. |
Date: | 2024–11–08 |
URL: | https://d.repec.org/n?u=RePEc:rbz:wpaper:11070 |
By: | Heierhoff, Sebastian |
Abstract: | The rapidly evolving technological landscape does, in the form of digital innovations, create opportunities for organizations and consumers alike. At the same time, it does, however, confront both parties with increasing cybersecurity challenges. This dissertation deals with the conflicting demands of maintaining competitive advantage and leveraging the benefits of digital innovation while ensuring cybersecurity. It explores the resulting tensions and potential trade-offs from both a consumer and organizational perspective, seeking to provide theoretical and practical contributions on how the interplay between digital innovation and cybersecurity can be optimized and how the two domains can be balanced effectively. Thereby, the dissertation is guided by three overarching research questions: First, how do consumers' attitudes towards innovation and cybersecurity influence their acceptance of digital innovations? Second, how do organizations perceive and navigate the trade-offs between digital innovation and cybersecurity? Third, what are the implications of organizational design in general and organizational ambidexterity in specific for the interplay of digital innovation and cybersecurity capabilities? These research questions are dealt with in four empirical studies. The first study focuses on the consumer perspective and the trade-offs they make in their technology acceptance decisions. Therefore, the Technology Acceptance Model is extended by four constructs - Personal innovation affinity, personal risk appetite, perceived innovativeness, and perceived cybersecurity risk. Participants of an online survey are presented with three fictitious products from the mobility sector, where digital innovations such as connected vehicles and smart mobility solutions are emerging rapidly. The findings from the first study underline that consumers sometimes neglect cybersecurity when innovative product characteristics promise substantial benefits. For certain product types, consumers do, however, seem to have increased cybersecurity concerns that organizations need to consider. The study suggests that consumer education and transparency about a product’s cybersecurity maturity are essential for informed technology acceptance decisions. Studies two, three, and four deal with the organizational perspective of the interplay between digital innovation and cybersecurity. The second study focuses on the automotive industry, exploring how organizations perceive the conflicting demands and balance them through organizational ambidexterity. The study follows a qualitative research approach drawing on nine experts questioned in semi-structured interviews. Its findings confirm the perception of a trade-off between the two domains in the automotive industry, with factors like the importance of time-to-market for digital innovations leading organizations to deprioritize and postpone cybersecurity aspects. The study suggests that strategic and operational elements of organizational ambidexterity, including corporate culture, management commitment, communication, and early integration of cybersecurity, can help minimize trade-offs and even turn cybersecurity into a competitive advantage. The third study focuses on the German logistics industry in a comparable research approach using semi-structured interviews with 14 experts for digital innovation and cybersecurity. Their analysis suggests that there are different types of tensions between digital innovation and cybersecurity capabilities negatively influencing innovation efforts in three ways: by slowing down (temporally), requiring more resources (economically), or restricting innovative freedom (functionally). Furthermore, triggers like rapid technological changes and increased market competition as well as resolving factors like flexible governance structures and an early integration of cybersecurity into digital innovation efforts are identified. Awareness of these factors helps organizations achieve a digital innovation-cybersecurity equilibrium. The fourth and final study included in this dissertation investigates how organizations can achieve ambidexterity and integrate the two domains in the context of digital innovation units. The cross-industry interview study, analyzed following the Grounded Theory methodology, leverages Galbraith’s star model as a frame of reference. Embedded within this frame, different types of innovation units and three organizational design patterns that impact the consideration of cybersecurity within these types of units, are identified. The findings underline that, depending on strategic, structural, and processual aspects, the different types of digital innovation units are more or less likely to ill- or over-consider cybersecurity. Besides the study's theoretical contribution to organizational design literature, this framework has practical implications for the setup of innovation units in practice. Collectively, the four studies contribute to a deeper understanding of the interplay between digital innovation and cybersecurity. Theoretically, while contributing to technology acceptance, organizational design, and ambidexterity theory in general, this dissertation advances the literature on digital innovation management and cybersecurity in specific by advocating for a more integrated approach that considers the conflicting demands of the two domains. Practically, it provides insights for consumers and organizations trying to navigate the resulting tensions, for example, by promoting consumer awareness or by creating an organizational culture that equally promotes both digital innovation and cybersecurity. The frameworks developed in the four studies provide a foundation for future studies on the digital innovation-security nexus, for example in further industries, and offer practical guidance, for example, concerning product marketing or digital innovations strategy. In conclusion, this dissertation highlights the importance of considering digital innovation and cybersecurity as complementary instead of opposing forces of an organization’s digital transformation. Organizations should not restrict cybersecurity to being a technical issue but see it as a strategic necessity to be embedded into their digital innovation efforts. In the long run, this will lead to more secure digital innovations, increased consumer trust, and competitive advantages. |
Date: | 2025–03–17 |
URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:153541 |
By: | Jeffrey Allen |
Abstract: | Payment fraud has been high in recent years, and as criminals gain access to capability-enhancing generative AI tools, there is a growing need for innovative fraud detection research. However, the pace, diversity, and reproducibility of such research are inhibited by the dearth of publicly available payment transaction data. A few payment simulation methodologies have been developed to help narrow the payment transaction data gap without compromising important data privacy and security expectations. While these simulation approaches have enabled research advancements, more work is needed to generate datasets that reflect diverse and evolving fraud tactics. This paper introduces CardSim, a flexible, scalable payment card transaction simulation methodology that extends the small but emerging body of simulators available for payment fraud modeling research. CardSim is novel in the extent to which it is calibrated to publicly available data and in its Bayesian approach to associating payment transaction features with fraud. The simulator’s modular structure, which is operationalized in a corresponding software package, makes it easy to update based on new evidence about payment trends or fraud patterns. After laying out the simulation methodology, I show how outputs can be used to test and evaluate machine learning workflows, modeling approaches, and interpretability frameworks that are relevant for payment card fraud detection. |
Keywords: | Payment cards; Fraud detection; Bayesian analysis; Simulation; Machine learning |
JEL: | C11 C15 C80 E42 |
Date: | 2025–02–28 |
URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-17 |
By: | Hurerah, Abu; Shehzad, Hafiz Tamoor; Anwar, Muhammad Adnan; Razzaq, Mudassar; Becker, Marcus |
Abstract: | Managing electronic health records (EHRs) within hospitals presents significant challenges, particularly in ensuring the security, privacy, and accessibility of sensitive patient data. Traditional systems are often vulnerable to breaches and inefficiencies, demanding the need for exploration of innovative technologies. This paper proposes a blockchain-based electronic health records (BbEHR) system utilizing the Ethereum blockchain and Flutter framework to create a decentralized, immutable, and tamperproof platform for hospital management. The Ethereum blockchain's smart contract functionality provides secure storage and guarantees data integrity, while the Flutter framework enables the development of responsive and visually appealing user interfaces across multiple devices. This decentralized approach enhances data privacy, accessibility, and system resilience against failures, offering a transformative solution for EHR management. The proposed system has the potential to secure healthcare data management by providing a secure, efficient, and user-friendly platform that meets the stringent requirements of modern healthcare institutions, adding the fact that introducing a BbEHR would minimize the danger of manipulating patient data due to its decentralized structure including unique cryptography methods for reaching consensus in each block of the chain. |
Date: | 2025 |
URL: | https://d.repec.org/n?u=RePEc:zbw:ismwps:313091 |
By: | Matondang, Ryan Nathanael |
Abstract: | Kata E-commerce merupakan singkatan dari kata electronic dan commerce. Secara singkat arti dari e-commerce adalah perdagangan elektronik. Namun jika diartikan lebih jauh e-commerce bisa berarti segala kegiatan perdagangan yang meliputi proses pemasaran hingga distribusi barang atau jasa yang dilakukan secara online atau melalui jaringan elektronik. E-commerce menyediakan suatu kemudahan untuk menjual dan membeli produk serta informasi melalui internet atau sarana lainnya tanpa terbatas oleh area geografis. |
Date: | 2023–03–03 |
URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:we3af_v1 |
By: | World Bank |
Keywords: | Infrastructure Economics and Finance-Infrastructure Economics Infrastructure Economics and Finance-Infrastructure Finance Infrastructure Economics and Finance-Infrastructure Regulation Finance and Financial Sector Development-E-Finance and E-Security |
Date: | 2023–06 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:39906 |
By: | Donni Fajar Anugrah (Bank Indonesia); Novi Maryaningsih (Bank Indonesia); Andi Widianto (Bank Indonesia); Tri Kurnia Ayu S. (Bank Indonesia); Fickry Widya N. (Bank Indonesia); Arief N. Rachman (Bank Indonesia); Minda Putri Dwinanda (Bank Indonesia); Citra Amanda (Bank Indonesia); Eunike Vrigie Ruth Y. (Bank Indonesia); Tio Angie P. Samosir (Bank Indonesia); Naufal Alfaraby Winandita (Bank Indonesia); Shania Rahmi (Bank Indonesia) |
Abstract: | In the midst of the rapid development of the digital economy in Indonesia, Indonesia continues to strive to keep domestic prices stable. One of a part of digitalization development is the presence of e-commerce, which has the potential to reduce the inflation rate through various channels. Changes in producer and consumer behavior that shift to online markets create a more competitive and transparent market environment. The development of ecommerce is also inseparable from innovations in the financial sector, especially digital payment systems, which are an important component in contributing to the fluidity of e-commerce transactions. However, the behavioral changes that occur can cause bias in the calculation of the consumer price index. We analyze the impact of digitalization through ecommerce on inflation in Indonesia on a national and regional scale. This study also analyzes the impact of payment systems on e-commerce and seek out the possibility of bias in the calculation of inflation. The method used is GMM (Generalized Method of Moments) with a panel data range of 34 provinces from 2018-2023 with monthly frequency. The results of the quantitative analysis are also supported by the findings of the field study. The results of this study show that digitalization through e-commerce consistently has a significant negative effect on national and regional core inflation. The study also finds a positive impact of payment systems on e-commerce transactions and finds bias in inflation calculation. In-depth regional analysis from the representative provinces of North Sumatra, East Java, and South Sulawesi also supports the findings of this study. Based on the results of this study, it is important for Bank Indonesia as a monetary policy maker to strengthen its strategic plan in utilizing digitalization through e-commerce as an effort to control inflation in Indonesia. |
Keywords: | Digitalization, Inflation, E-Commerce, GMM |
JEL: | E31 O33 L81 |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp012024 |
By: | Mahdi, Dhiyaul |
Abstract: | Mencapai keseimbangan antara skalabilitas, keberlanjutan, dan keamanan sambil mempertahankan desentralisasi telah menjadi solusi target untuk aplikasi blockchain yang terdesentralisasi selama beberapa tahun terakhir. Beberapa pendekatan telah diusulkan oleh beberapa tim blockchain untuk mencapainya, Ethereum termasuk di antaranya. Ethereum berada di jalur peningkatan protokol utama yang disebut Ethereum 2.0 (Eth2), menerapkan Sharding dan memperkenalkan Proof-of-Stake (PoS). Karena perubahan mekanisme konsensus merupakan masalah yang rumit, peningkatan ini akan dicapai melalui fase yang berbeda, yang pertama adalah penerapan Beacon Chain. Sebagai Ethereum1, Eth2 mengandalkan jaringan peer-to-peer (p2p) terdesentralisasi untuk distribusi pesan. Hingga saat ini, ada lebih dari 17.500 node di jaringan utama Eth2 yang tersebar secara geografis. Namun, topologi yang satu ini masih belum diketahui. Dalam makalah ini, kami menyajikan hasil yang diperoleh dari analisis yang kami lakukan pada jaringan p2p Eth2. Menggambarkan topologi jaringan, kemungkinan bahaya yang disiratkan oleh yang satu ini (Cortes-Goicoechea and Bautista-Gomez, 2021). |
Date: | 2023–03–01 |
URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:fs5qj_v1 |
By: | Marco Garofalo; Giovanni Rosso; Roger Vicquéry |
Abstract: | This paper studies the effect of financial sanctions on the dominance of the US dollar in global credit markets. In the aftermath of the invasion of Crimea in 2014, sanctions imposed by both the US and the EU restricted the provision of financial services to Russian firms. We document how, between 2014 and 2021, the share of global cross-border credit to Russia denominated in US dollars declined from 65% to 25%, while the share denominated in euros rose from 20% to 45%. Relying on confidential bank-level data covering the universe of global banks located in the UK, we show that this shift was driven by banks previously lending to Russia in US dollars, and that banks shifted to euro lending to Russia regardless of whether their ultimate owner was based in a sanctioning jurisdiction or not. We argue that this euroisation relates to an increase in the relative “settlement risk” of US dollar claims, in the context of US extra-territorial sanctions targeting the dollar payment system. We rationalise our findings in a three-country model with financial intermediaries, where sanctions are introduced as both jurisdiction and currency-circuit specific frictions. |
Date: | 2025–04–15 |
URL: | https://d.repec.org/n?u=RePEc:oxf:wpaper:1079 |
By: | Ivan Radanovic (National Bank of Serbia) |
Abstract: | The aim of this paper is to analyse the prospects of cross-border linking of instant payment systems. The core idea behind such linking is to make cross-border payments faster, more secure and cheaper for end-users, in line with the G20’s October 2020 plan to facilitate cross-border payments. This should be achieved by addressing persistent issues such as high costs, low speed, and insufficient transparency in these payments. Due to its comparative advantages, cross-border linking of instant payment systems is expected to replace the current model of cross-border payments via correspondent banking in the future. Compatibility between different payment systems requires that exchanged information are structured in a largely or entirely identical manner. The basis for ensuring compatibility lies increasingly in the use of electronic messages under the ISO20022 standard. A part of the paper is dedicated to the characteristics of the NBS IPS system, which relies on this message format, owing to which it is compatible with the European Central Bank’s TIPS system. The paper employs descriptive, comparative, and case-study methods to explore the features of current initiatives for cross-border linking of payment systems. It studies recent developments of this concept of linking, particularly paying attention to the characteristics of pan-European linking via the European Central Bank’s TIPS system, based on the SEPA payment scheme rules defined by the European Payments Council. The final section discusses the potential linking of the Serbian and pan-European instant payment infrastructures, which, in addition to technical interoperability between the two payment systems, requires Serbia to be part of the SEPA geographical area. At the end of 2024, a request to join this area was submitted to the European Payments Council with a response expected in March 2025. |
Keywords: | instant payments, cross-border payments, integration, linking, TIPS, SEPA |
JEL: | E42 F02 G15 G28 |
Date: | 2025–03 |
URL: | https://d.repec.org/n?u=RePEc:nsb:bilten:29 |
By: | Prayudhi Azwar (Bank Indonesia); Cicilia Anggadewi Harun (Bank Indonesia); Annes Nisrina Khoirunnisa (Bank Indonesia) |
Abstract: | Employing System Thinking (ST) and Bayesian Networks (BN), this research has developed framework for a digital transformation of a central bank. The transformation is influenced by three key elements: technology-driven transformation, human capital digital capabilities, and digitalized policymaking capacities. The role of transformative digital leader is the initial critical factor in the causal loop diagram (CLD). Institutional digital leadership is set as the end state of digital transformation, which reflects the lev el of digital maturity. The strength analysis in the BN confirms that the most significant influence on the maturity level of the digital transformation is the digitalized policy making capacities. The combination of digitalized policy-making capacities, human capital digital capabilities, and technology-driven transformation serves as the key factors of central banks transformation towards digital maturity, respectively. The results also show the necessity of addressing operational and cyber risks, formulating robust regulations, and enhancing technological resilience to ensure sustainability and effectivity of the integrated digital central bank transformation. |
Keywords: | Digital central bank, digital transformation, system thinking, bayesian network, public policy, human capital capabilities, digitalized policy making capacities |
JEL: | E58 L20 O15 Z18 |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp152024 |
By: | Kayleigh Barnes; Connor Bopst; John C. Driscoll |
Abstract: | Consumer credit card delinquency rates, after having rapidly fallen to record-low levels in the early stages of the pandemic, increased sharply, reaching their pre-pandemic levels by 2023:Q1. Since then, delinquencies have risen further, albeit at a diminishing rate, and as of 2024:Q3 stand about 125 basis points above those early 2023 levels (Figure 1). These continued increases could reflect factors that were, before the pandemic, believed to affect household credit quality. They could also be attributable to something unusual related to the pandemic that might indicate a more consequential deterioration in households' financial positions. |
Date: | 2025–02–28 |
URL: | https://d.repec.org/n?u=RePEc:fip:fedgfn:2025-02-28-3 |
By: | Mathias Hoffmann; Tetsuji Okazaki; Toshihiro Okubo |
Abstract: | In Japan in the 1920s, several financial crises and government policy led to bank mergers and the consolidation and expansion of branch networks. Using unique historical bank branch-level lending and deposit data, we show that branch banking integrated peripheral markets with the rest of the country, with large urban banks — those headquartered in Tokyo and Osaka — using deposit supply shocks in peripheral areas to fund lending elsewhere. While these findings support contemporary concerns about branch banking draining funds from peripheral markets, we argue that the export of liquidity by urban banks likely represented an efficient reallocation of credit, driven primarily by competition in funding markets. Faced with high-yielding lending opportunities in central prefectures, urban banks bid up deposit rates in peripheral areas, raising local banks’ funding costs. Local banks responded by lowering intermediation margins and reducing lending to traditional industries, which suggests that they shifted their lending to less risky and more efficient customers. We speculate that this competitive reallocation of capital across regions and sectors allowed banks to maintain a functional specialization in different customer segments, which may explain the continued coexistence of small relationship lenders and large integrated arms-length lenders in local banking markets. |
Keywords: | bank, branch banking, regional ï¬ nance, bank merger, economic history, Japan, internal capital markets, relationship lending, financial integration |
JEL: | F36 G2 N2 N9 |
Date: | 2025–03 |
URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-16 |