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on Payment Systems and Financial Technology |
| By: | Amarendra Sharma |
| Abstract: | The U.S. dollar's status as the global reserve currency faces growing challenges from a 36 trillion dollar national debt, geopolitical shifts, and the emergence of digital currencies. This paper introduces the Quantum Reserve Token (QRT), a decentralized digital currency backed by quantum computational capacity - a scarce, productive resource projected to add over 1 trillion dollars to global GDP by 2035. Unlike Bitcoin's fixed-supply volatility, stablecoins' dependence on fiat trust, or central bank digital currencies' jurisdictional limits, QRT uses quantum computing power as a novel value anchor. This study develops a monetary theory-based framework for QRT, compares it to existing digital currency models, and evaluates its feasibility across technological, economic, geopolitical, and adoption dimensions. QRT offers a stable, neutral, and scalable reserve currency alternative, potentially reshaping the global monetary system. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2503.22056 |
| By: | Khanullah Mohammady (Osmania University); Sudha Vepa (Osmania University) |
| Abstract: | Aim: Financial inclusion refers to the availability and use of financial services to individuals and businesses at an affordable cost, without discrimination to any group. This study examines gender disparity in the utilization of formal financial services in Afghanistan, a country where financial exclusion remains a critical issue. Design/methodology/approach: This study is quantitative in nature, using data from the Global Findex data (2011-2021) from the World Bank. The study employs a descriptive summary to provide an overview of the data. The Kruskal-Wallis test and Dunn's post-hoc test are then applied to test the hypothesis considered under this study. Additionally, the study presents key barriers to financial inclusion in Afghanistan using Global Findex 2021 data, analyzed descriptively through graphical representation. Research Findings: The findings reveal significant disparities in account ownership, debit card usage, digital payment adoption, and savings, with males consistently demonstrating higher usage across these services. No disparity was observed for borrowings and mobile money, and low usage levels were exhibited for both men and women. Additionally, barriers to financial inclusion in Afghanistan, such as insufficient funds, distance, trust, documentation and cost, limit access to formal financial services. Theoretical Contribution/Originality: Despite the importance of financial inclusion and gender disparity, Afghanistan remains largely understudied. While numerous studies have examined gender gaps in financial access using the Global Findex database across various countries, research specific to Afghanistan is scarce. This study fills this gap by providing empirical evidence of gender disparities and highlights the need for targeted interventions. |
| Keywords: | Gender gap, Financial inclusion (FI), Barriers to financial inclusion, Afghanistan |
| Date: | 2025–03–13 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04990019 |
| By: | Yan Shen; Mr. Fei Han; Yanlong Li |
| Abstract: | This paper uses both macro and household-level data to examine the relationship between digital financial inclusion, measured by the Peking University digital financial inclusion index, and income inequality in China. We find that a higher level of digital financial inclusion is associated with significantly lower income inequality within provinces, including through having larger positive effects on lower-income households’ incomes from salaries and public and private transfers. However, we do not find a significant impact of digital financial inclusion on income inequality across provinces, as households in the relatively more developed southern region benefitted more from digital financial inclusion than those in the northern region. We also find that digital financial inclusion has larger effects on the incomes of rural, female-headed, and less educated households, which have likely contributed to the narrowing of the overall income inequality, but a smaller effect on the income of elderly households—pointing to the “digital divide” problem among the elderly in China. |
| Keywords: | Digital financial inclusion; income inequality; micro mechanism |
| Date: | 2025–04–04 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/071 |
| By: | Rogalski, Timo; Schiereck, Dirk |
| Abstract: | In the era of emerging technologies, many firms explore the role of blockchain technology and its impact on corporate market value. Past research has shown that companies benefit from executing blockchain projects, but little is known about specific value and risk drivers. Hence, we provide evidence for several conditions under which blockchain provides additional firm market value. Moreover, we test whether blockchain announcements lead to changes in the systematic risk of firms. Theoretically founded on the resource-based view, we utilize the event study methodology, supplemented by a multivariate regression and a firm’s beta analysis. We find that stock markets react positively to corporate blockchain news if the announcement is related to a blockchain consortium or partnership, is declared by a tech company, or if the announcement is a follow-up announcement to initial blockchain news. Moreover, our findings show that blockchain announcements do not lead to significant changes in a firm’s systematic risk. |
| Date: | 2025–04–07 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:154097 |
| By: | Axel Gautier; Leonardo Madio; Shiva Shekhar |
| Abstract: | We consider a market in which a platform hosts third-party monopolistic complementors. Users are segmented into single-use and multi-use consumers, and services exhibit network externalities. In the agency model, the presence of multi-use consumers leads complementors to set inefficiently high prices, reducing demand and the platform’s profits. Platform entry can resolve these pricing inefficiencies by targeting multi-use consumers with a bundled offering, but it then fragments the market, diminishing network benefits for consumers. We find that the platform opts to enter only when it has committed to a low commission fee, and network benefits are modest. Integration with a complementor reduces prices for consumers and enhances network benefits, thereby improving consumer welfare, but the pricing inefficiency is only partially mitigated. |
| Keywords: | platform, network externalities, platform strategy, hybrid business model |
| JEL: | L22 L86 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11711 |
| By: | Jesper Akesson; Robert Hahn; Robert Metcalfe; Manuel Monti-Nussbaum |
| Abstract: | Although fake online customer reviews have become prevalent on platforms such as Amazon, Google, and Facebook, little is known about how these reviews influence consumer behavior. This paper provides the first experimental estimates of the effects of fake reviews on individual demand and welfare. We conduct an incentive-compatible online experiment with a nationally representative sample of respondents from the United Kingdom. Consumers are asked to choose a product category, browse a platform resembling Amazon, and select one of five equally priced products. One of the products is of inferior quality, one is of superior quality, and three are of average quality. We randomly allocate participants to variants of the platform: five treatment groups see positive fake reviews for an inferior product, and the control group does not see fake reviews. Moreover, some participants are randomly selected to receive an educational intervention that aims to mitigate the potential effects of fake reviews. Our analysis of the experimental data yields four findings. First, fake reviews make consumers more likely to choose lower-quality products. Second, we estimate that welfare losses from such reviews may be important - on the order of .12 dollars for each dollar spent in the setting we study. Third, we find that fake reviews have heterogeneous effects. For example, the effect of fake reviews is smaller for those who do not trust customer reviews. Fake reviews also have larger effects on those who shop online more frequently. Fourth, we show that the educational intervention reduces the adverse welfare impact of fake reviews by 44%. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:feb:framed:00821 |
| By: | Erveton P. Pinto; Marcelo A. Pires; Rone N. da Silva; S\'ilvio M. Duarte Queir\'os |
| Abstract: | We report the first application of a tailored Complexity-Entropy Plane designed for binary sequences and structures. We do so by considering the daily up/down price fluctuations of the largest cryptocurrencies in terms of capitalization (stable-coins excluded) that are worth $circa \, \, 90 \%$ of the total crypto market capitalization. With that, we focus on the basic elements of price motion that compare with the random walk backbone features associated with mathematical properties of the Efficient Market Hypothesis. From the location of each crypto on the Binary Complexity-Plane (BiCEP) we define an inefficiency score, $\mathcal I$, and rank them accordingly. The results based on the BiCEP analysis, which we substantiate with statistical testing, indicate that only Shiba Inu (SHIB) is significantly inefficient, whereas the largest stake of crypto trading is reckoned to operate in close-to-efficient conditions. Generically, our $\mathcal I$-based ranking hints the design and consensus architecture of a crypto is at least as relevant to efficiency as the features that are usually taken into account in the appraisal of the efficiency of financial instruments, namely canonical fiat money. Lastly, this set of results supports the validity of the binary complexity analysis. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.01974 |
| By: | Hess, Simon |
| Abstract: | This paper studies the effects of introducing a Central Bank Digital Currency (CBDC) on economic output, bank intermediation and financial stability in a closed economy using an Agent-based Stock Flow Consistent (AB-SFC) Model. Thereby a digital bank run is simulated across various economic environments with different monetary policy and bank bankruptcy regimes. According to the model, non-remunerated CBDC issued in a positive-interest environment with a corridor system may increase GDP through increased seigniorage income and government spending. Also bank funding becomes more expensive since bank deposit stickiness is prevented. Non-remunerated CBDC issued in a zero-interest environment has no impact since there is no distributional effect of the interest payments. In a floor-system where the interest rate on CBDC matches the policy rate, CBDC also counteracts deposit stickiness and redistributes bank profits from shareholders to depositors. Thereby CBDC improves the transmission of the policy rate to households and firms. The bank bankruptcy regime also affects the outcome. While CBDC makes no difference in a bailout regime it does in a bail-in regime where it decreases inequality and distributes bank rescue costs evenly among households and firms, potentially enhancing financial stability. Introducing CBDC within a deposit insurance system postpones bank rescue payments, which creates an additional dynamic in GDP. |
| Keywords: | central bank digital currency, agent-based model, bank run, bailout, bail-in, financial stability |
| JEL: | E42 E58 G21 G23 G28 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:roswps:171 |
| By: | Alessandro Longo; Teodoro Criscione; Julio Linares; Sowelu Avanzo |
| Abstract: | Circles UBI is a blockchain-based Community Currency System (CCS) that has been active in Berlin (Germany) since October 2021. The Circles Coop, which launched the project in 2021, was shut down in December 2023. In this paper, we show the results of a survey carried out between October and November 2023. The respondents were twenty-five individuals involved in various ways in the Circles' network. The main emerging narrative points out how their participation was deeply motivated by their identification with the values and ideals of the Circles community. Among them, we selected five profiles that stood for their difference in type and degree of involvement. Finally, we report some stories of economic linkages that suggest a positive externality in adopting a local community currency. To our knowledge, this is the first qualitative study of a universal basic income designed as a community currency and adopting blockchain technology. This pilot project was a remarkable experiment for its adopted advanced technological and social innovations. In fact, as far as we know, the integration of basic income and local currency features has been experimented with only in two other cases (Maric\'a, Brazil and Barcelona, Spain) and none of them adopted a decentralized ledger system. In this work, we try to outline strengths and weaknesses that emerged after about two years of activity. For this reason, future researchers and activists interested in this field will find valuable information. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.02714 |
| By: | International Monetary Fund |
| Abstract: | Selected Issues |
| Keywords: | copyright page; No. 25/68; legal tender status; valuation profits; dollar-Bitcoin conversion; Financial inclusion; Currencies; Digital financial services; Central America; Global; Sub-Saharan Africa |
| Date: | 2025–03–19 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfscr:2025/068 |
| By: | Madiha Bendjaballah (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine); Sandrine Heitz-Spahn (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine); Christian Dianoux (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine) |
| Abstract: | It is in a context of strong desire to enhance customer experience that Zara, brand of the Inditex group, has invested about 1.7 billion $ in 2022. Customers entering in-store can now directly find out if the desired product is available in their size ("click and go"), geolocate it in the store ("click and find") and reserve a fitting room in one click ("click and try"). For the customer, the interest is therefore functional since the path-of-purchase is made easier and more fluid, but also hedonic through a more playful and personalized in-store experience (Burke, 2002; Collin-Lachaud & Vanheems, 2016; Pantano & Naccarato, 2010). For retailers, mobile services create the desire to buy customers and improve their knowledge and experience. Most research has focused on the impact of these kind of mobile application on retail's performance (Grewal & al., 2018) or on the drivers of mobile usage in-store (Broeckelmann & Groeppel-Klein, 2008). However, literature based on mobile in-store appears to be underdeveloped (Grewal & al., 2018) and there is still notably a lot to be understood about how it is used by customers and therefore their motivations. Obviously, the literature has been more interested in retailer's own technology, such as Self-Service Technology (SST) (Bitner & al., 2000; Djelassi, 2018; Meuter & al., 2000), intelligence artificial-based technology (Hildebrand & Bergner, 2021; Shankar, 2018), augmented reality-based technology or robots (Blut & al., 2021). Regarding to mobile use in-store, several authors have called for a better understanding of the general use of mobile in-store and the impacts for retailers (Grewal & al., 2018; Shankar & al., 2016). In this respect, the understanding of customer's motivations in-store deserves to be better understood. Indeed, research was mainly interested in the extrinsic motivations of the customer thanks to persuasive communication strategies through the use of coupons or promotions (Kowatsch & Maass, 2010), without considering their intrinsic motivations. To this end, this study aims to understand how the customer use mobile in-store and what are its intrinsic motivations? For retailers, this better understanding of mobile use can allow them to better adapt their mobile services, enhance customer experience and therefore translate into better performance. In this purpose, we focus on the Self-Determination Theory (Deci & Ryan, 2000) to better understand customer's intrinsic motivations when using mobile in-store. Indeed, the Self-Determination Theory considers three key elements, which are congruent with intrinsic motivation: (1) feelings of autonomy, (2) perceived competence and (3) the need to belong. Our exploratory qualitative study, based on in-depth interviews with customers, shows that these three dimensions have been highlighted by the respondents. Nevertheless, our results also show that these three dimensions don't have the same impact since, when 3/4 of the respondents highlight the need for competence, a little less than half mention the need for autonomy and only one third mention the use of the mobile for interaction needs. This observation leads us to consider the limits of our study and the resulting research avenues. |
| Date: | 2023–07–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05011958 |