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on Payment Systems and Financial Technology |
| By: | Nobel Prize Committee (Nobel Prize Committee) |
| Abstract: | On a daily basis, we are reminded of how fast technology progresses and how it changes the world around us. New discoveries and new innovations affect our lives directly and they also fundamentally affect the economy. Technological change is of course not a new phenomenon. Progress and innovations have occurred since ancient times. What is relatively recent, however, viewed against the entire history of hu- mankind, is the type of innovation-driven economic growth enjoyed by the advanced countries of the world during the last two centuries, and how such high growth rates are sustained. |
| Keywords: | technological innovation; economic growth |
| JEL: | O |
| Date: | 2025–10–13 |
| URL: | https://d.repec.org/n?u=RePEc:ris:nobelp:021675 |
| By: | Nicola Borri; Yukun Liu; Aleh Tsyvinski; Xi Wu |
| Abstract: | Cryptocurrencies are coming of age. We organize empirical regularities into ten stylized facts and analyze cryptocurrency through the lens of empirical asset pricing. We find important similarities with traditional markets -- risk-adjusted performance is broadly comparable, and the cross-section of returns can be summarized by a small set of factors. However, cryptocurrency also has its own distinct character: jumps are frequent and large, and blockchain information helps drive prices. This common set of facts provides evidence that cryptocurrency is emerging as an investable asset class. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.14435 |
| By: | Giuseppe Gurrado; Donato Masciandaro |
| Abstract: | In the ongoing race between new digital currencies, a crucial factor for success will be their relative ability to gain acceptance as a medium of exchange, shaping the demand for money. Focusing on the emerging competition between stablecoins and CBDCs, this analysis offers quantitative insights into which of the two is gaining more attention among different audiences, exploring both academic and public interest in recent years. The growth rates of academic publications on stablecoins and CBDCs, after alternating periods of predominance, now appear to converge, even though research on CBDCs remains higher in absolute terms. However, beyond academia, public attention confirms the possibility of stablecoins catching up. The observed cycles of attention for the two digital currencies highlight the importance of specific events, as well as the relevance of contextual and country-specific factors. |
| Keywords: | Central Bank Digital Currencies, Cryptocurrencies, Stablecoin, Money Demand, Social Networks |
| JEL: | B22 C91 E41 E42 E52 E58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp25254 |
| By: | Read, Oliver |
| Abstract: | Decentralised Finance applications aim to replicate existing financial products and services from the highly regulated Traditional Finance (TradFi) system using the distributed ledger technology and smart contracts. An open, multi-layered and composable architecture has facilitated the deployment of many DeFi projects leading to a growing complex network of interacting DeFi protocols. The size of the DeFi market has grown to several hundred billion USD in Total Value Locked by users in DeFi protocols. Important use cases include decentralised lending and borrowing, decentralised exchanges and crypto staking. The DeFi sector is effectively becoming a shadow financial system with cryptoassets. DeFi innovators praise decentralisation and disintermediation of financial products and services as beneficial. On the contrary, regulators and policymakers issue warnings on consumer risks and financial stability risks. Awareness has increased following a string of crypto-related collapses and failures during the Crypto Winter 2022-2023. The emerging consensus is that the DeFi market needs to be supervised, but how? The traditional approach to regulate a few centralised entities and financial intermediaries does not work. Thus, a range of regulatory responses and approaches is being discussed. In the European Union the path has been partly laid by the Markets in Crypto-assets Regulation (MiCA) as the text itself contains mandatory steps to address developments of the DeFi market. |
| Keywords: | crypto-assets, crypto staking, Crypto Winter, DAO, decentralised autonomous organisation, decentralised exchanges, decentralised finance, decentralised lending, DeFi, DeFi protocols, distributed ledger technology, governance token, MiCA, regulation, smart contracts, stablecoins, Total Value Locked, TradFi, TVL |
| JEL: | F30 G15 G18 G28 O33 O38 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wifinw:328275 |
| By: | Maarouf, Abdurahman; Greene, Kevin T.; Shapiro, Jacob N; Feuerriegel, Stefan (LMU Munich); Ribeiro, Manoel Horta |
| Abstract: | Short-form video platforms, such as TikTok, have rapidly transformed digital media consumption, with billions of active users worldwide. Their design features, such as algorithmic personalization, endless scrolling, and rapid novelty, have raised concerns about mobile overuse and its associated adverse effects on well-being. However, evidence on whether short-form videos increase mobile usage remains limited. To address this gap, we estimate the causal effect of short-form video platforms on mobile usage behavior using individual-level data (N=1, 764) drawn from a representative panel of U.S. mobile device users. Specifically, we compare TikTok adopters to adopters of Instagram/Facebook during the period when short-form video was the key distinguishing feature of TikTok (i.e., before these competitors introduced their own short-form video products), thereby shedding light on the effect of exposure to short-form videos. We find that using short-form video platforms significantly increases total mobile usage duration (up to 17%) and reduces average time away from the mobile phone (by -20%), but does not consistently affect the number of daily sessions. Effects are disproportionately higher among individuals who previously used their phones less, relative to those with higher baseline usage. Contrary to fears about nocturnal overuse, effects are only significant during daytime hours. Surprisingly, older individuals have significantly larger increases in mobile sessions per day from usage of short-form video platforms compared to younger individuals. Altogether, our results show a behavioral mechanism through which short-form video platforms contribute to mobile overuse, offering new insights into theories of digital addiction and highlighting the importance of promoting healthier digital engagement. |
| Date: | 2025–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nge76_v1 |
| By: | Taiga Okuyama (Bank of Japan); Kazutoshi Sugimura (Bank of Japan) |
| Abstract: | In recent years, "asset tokenization" has attracted attention, with proof-of-concept experiments and actual transactions progressing worldwide. These initiatives can be understood as efforts to introduce new technologies to payment and settlement systems and extend their functionality in such a way that is only possible with digital technologies. As a prerequisite for that, legal stability concerning rights is essential. Various approaches exist among jurisdictions regarding how to determine private rights concerning the holding and transfer of tokenized assets. In this paper, we (i) extract the private law elements required for asset holding and transfer, (ii) analyze the legal developments carried out in Switzerland, Germany, France, and the United States while focusing on how these elements can be satisfied during tokenization, and (iii) provide an overview of proof-of-concept experiments and actual transactions conducted based on these developments. As a result of the analysis, a difference was confirmed between cryptoassets such as Bitcoin and tokenized assets: the former is designed to take on the characteristics of transferable assets by placing emphasis on the exclusivity of the power to dispose of tokens held by the managers of private keys rather than the principle of consensual transfer of rights, while the latter is premised on the structure that "rights in personam" (typically, claims) are recorded by tokens. Similarly, in Japan, considering these characteristics of tokenized assets, it would seem to be an option to proceed with further clarification of private rights through refinement of legal interpretation while considering legislative solutions that reference precedents from the above countries. |
| Keywords: | tokenization; control; principle of consensual transfer of rights; requirements for perfection; transactional security |
| JEL: | G18 G38 K11 K22 |
| Date: | 2025–10–17 |
| URL: | https://d.repec.org/n?u=RePEc:boj:bojwps:wp25e12 |
| By: | Ilan Strauss; Jangho Yang; Mariana Mazzucato |
| Abstract: | This paper examines whether monthly content creator earnings follow a power law distribution, driven by compounding 'rich-get-richer' dynamics (Barabasi and Albert 1999). Patreon creator earnings data for 2018, 2021, and 2024 for Instagram, Twitch, YouTube, Twitter, Facebook, and Patreon exhibit a power law exponent around $\alpha = 2$. This suggests that algorithmic systems generate unequalizing returns closer to highly concentrated capital income and wealth, rather than labor income. Platforms governed by powerful and compounding recommendation systems, such as Instagram and YouTube, exhibit both a stronger power law relation (lower $\alpha$) and lower mean, median, and interquartile earnings, indicating algorithms that disproportionately favor top earners at the expense of a 'middle class' of creators. In contrast, Twitter and Patreon have a more moderate $\alpha$, with less earnings inequality and higher middle class earnings. Policies which incentivize the algorithmic promotion of longer-tail content (to explore more and exploit less) may help creator ecosystems become more equitable and sustainable. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.26523 |
| By: | Din Amir; Bar Hoter; Moran Koren |
| Abstract: | This study examines strategic behavior in crowdfunding using a large-scale online experiment. Building on the model of Arieli et. al 2023, we test predictions about risk aversion (i.e., opting out despite seeing a positive private signal) and mutual insurance (i.e., opting in despite seeing a negative private signal) in a static, single-shot crowdfunding game, focusing on informational incentives rather than dynamic effects. Our results validate key theoretical predictions: crowdfunding mechanisms induce distinct strategic behaviors compared to voting, where participants are more likely to follow private signals (odds ratio: 0.139, $p |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.14872 |
| By: | Alain Dudoit |
| Abstract: | - Backgrounder - Executive Summary - Update October 15th 2025 Canada is at a critical juncture where major economic challenges and geopolitical tensions and the required transformation of public services require a new way of managing and operating federal-provincial-territorial (FPT) relationships. At the heart of this transformation is the imperative to establish public sector data interoperability. This approach not only enables more efficient service delivery and the adoption of AI but also contributes to national productivity and digital sovereignty. At the centre of Canadian public sector governance and operations is the citizen, who is also the taxpayer (individual or business), consumer and end user of services provided by various levels of government: federal, provincial, territorial, and municipal. Citizens are entitled to continuous, efficient, safe, and reliable public services, regardless of jurisdiction. Meeting this expectation is a shared responsibility that no level of government can assume alone. The response requires a collaborative, whole-of-governments approach based on modern tools and coordinated strategies. Despite efforts, Canada’s intergovernmental relations remain hampered by fragmented and often outdated systems and a lack of cohesion in governance structures, which together prevent the scalable and adaptable use of data across jurisdictions. In response to these structural challenges and an increasingly unstable international environment, the current federal government has identified a set of strategic priorities that are inherently dependent on high-quality, integrated data systems: adapting to climate change, preparing for and managing crises, improving domestic trade; addressing housing and affordability; protecting our sovereignty; modernizing the public service; and accelerating AI-enabled innovation. This report highlights that barriers to interoperability are primarily political and institutional rather than technical. Drawing on international models such as the European Union’s Interoperable Europe Act and lessons learned from policy frameworks put in place by the United Kingdom, the G7 and California, the report proposes a Canadian path rooted in federated governance, modular agreements and data architectures based on trust, respect for jurisdictional responsibilities and individual rights. The report recommends two urgent measures: concluding an FPT agreement on data interoperability and creating a permanent FPT board on AI and interoperability. These initiatives are not mere technical adjustments: they are strategic and fundamental to any nation-building project. They respond to the Prime Minister’s call to identify projects with lasting benefits. The proposed FPT interoperability framework agreement aligns directly with the national interest designation criteria set out in Part 2 of Bill C-5, the Building Canada Act. It strengthens Canada’s autonomy, resilience, and security by supporting the sharing of cyber-resilient infrastructure and the coordination of emergency response capabilities. It also offers clear economic and institutional benefits by improving service delivery, facilitating labour mobility, and fostering conditions conducive to productivity growth through AI. This is not a marginal reform, but a fundamental change: a transformation of how governments collaborate, guided by the principles of transparency, subsidiarity, and shared objectives. - Document d'Appui FR - Résumé Exécutif FR - Mise à Jour - 15 octobre 2025 Le Canada se trouve à un point critique où les enjeux économiques majeurs, les bouleversements géopolitiques et la difficile et nécessaire transformation des services publics exigent un nouveau mode de gestion et d’opération des relations fédérales-provinciales territoriales (FPT). Au cœur de cette transformation se trouve l’impératif d’établir l’interopérabilité des données du secteur public. Cette démarche permet non seulement une prestation de services plus efficace, mais aussi l’adoption de l’IA, et contribue à la productivité nationale, et la souveraineté numérique. Au centre de la gouvernance et des opérations du secteur public canadien se trouve le citoyen, qui est aussi le contribuable (particulier ou entreprise), le consommateur et l’utilisateur final des services fournis par les différents paliers de gouvernement : fédéral, provincial, territorial et municipal. Les citoyens ont droit à des services publics continus, efficaces, sûrs et fiables, quelle que soit la juridiction. Répondre à cette attente est une responsabilité partagée qu’aucun niveau de gouvernement ne peut assumer seul. La réponse nécessite une approche collaborative, à l’échelle de l’ensemble des gouvernements, fondée sur des outils modernes et des stratégies coordonnées. Malgré les efforts déployés, les relations intergouvernementales du Canada restent entravées par la fragmentation de systèmes le plus souvent obsolètes et un manque de cohésion des structures de gouvernance, qui, ensemble, empêchent l’utilisation évolutive et adaptable des données dans les différentes juridictions. Le gouvernement fédéral actuel, en réponse à ces défis structurels et à un contexte international de plus en plus instable, a défini un ensemble de priorités stratégiques qui dépendent intrinsèquement de systèmes de données intégrés de haute qualité : améliorer le commerce intérieur ; s’attaquer au problème du logement et de l’accessibilité financière ; protéger notre souveraineté ; moderniser la fonction publique et accélérer l’innovation fondée sur l’IA. Cette analyse souligne que les obstacles à l’interopérabilité sont principalement d’ordre politique et institutionnel plutôt que technique. S’inspirant de modèles internationaux tels que l’Acte pour une Europe interopérable de l’Union européenne et des enseignements tirés des cadres de politiques mis en place par le Royaume-Uni, le G7 ainsi que la Californie, le rapport propose une voie canadienne ancrée dans la gouvernance fédérée, les accords modulaires et les architectures de données fondées sur la confiance et le respect des droits de chacun. Le rapport recommande deux mesures urgentes : conclure un accord FPT sur l’interopérabilité des données et créer un conseil FPT permanent sur l’IA et l’interopérabilité. Ces initiatives ne sont pas de simples ajustements techniques : elles sont stratégiques et fondamentales pour tout projet de construction nationale. L’accord-cadre proposé en matière d’interopérabilité entre les gouvernements fédéral, provinciaux et territoriaux s’aligne directement sur les critères de désignation d’intérêt national énoncés dans la partie 2 du projet de loi C-5, la Loi sur la construction du Canada. Il renforce l’autonomie, la résilience et la sécurité du Canada en soutenant le partage d’infrastructures cyberrésilientes et la coordination des capacités d’intervention d’urgence. Il offre également des avantages économiques et institutionnels évidents en améliorant la prestation des services, en facilitant la mobilité de la main-d’œuvre et en favorisant des conditions propices à la croissance de la productivité grâce à l’IA. |
| Date: | 2025–10–15 |
| URL: | https://d.repec.org/n?u=RePEc:cir:cirbur:2025rb-01 |
| By: | Felix Aidala; Gizem Koşar; Daniel Mangrum; Wilbert Van der Klaauw |
| Abstract: | Consumer demand for “Buy Now, Pay Later” (BNPL) has surged, but the specific attributes consumers value remain unclear. We conduct a novel probabilistic stated choice experiment varying BNPL attributes across hypothetical scenarios to estimate consumers’ underlying preferences and their willingness to pay (WTP) for each feature. Consumers have a negative WTP for the standard bundle, on average, but younger and lower income consumers have stronger demand. Simulating consumer demand with estimated preference parameters reveals that most shifts away from the standard BNPL bundle reduce demand and create a more negatively selected pool of BNPL users, especially when interest is charged. |
| Keywords: | Buy Now Pay Later (BNPL); payment services; financial inclusion; probabilistic stated choices; survey experiment |
| JEL: | G51 G41 C93 R22 |
| Date: | 2025–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednsr:101928 |
| By: | Yuna Heo (University of Basel - Faculty of Business and Economics; Swiss Finance Institute) |
| Abstract: | This study investigates the impact of cybersecurity risk on bank fragility. By utilizing a novel bank-specific indicator of cybersecurity, we find that an increase in cybersecurity risk raises the probability of bank default. The effect is larger for banks facing deposit withdrawal, but less pronounced for banks with ample liquidity buffers. Further we show that data security laws can help reduce the potential fragility in banking; nonetheless, the influence of cybersecurity risk remains significant. Our findings provide suggestive evidence that cybersecurity risk exacerbates financial instability, but implementing adaptation policies can strengthen resilience against possible cyberattacks. |
| Keywords: | cybersecurity, cyber risk, financial stability, distance-to-default, bank default probability, systemic risk, bank fragility, cyberattacks, data breaches |
| JEL: | G15 G32 G38 Q54 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2569 |
| 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: | This research investigates the evolution of salespeople's reluctance to the use of Mobile Sales Assistants (MSAs) by salespeople almost 10 years after the seminal article by Spreer and Rauschnabel (2016). Analysis of 21 interviews conducted with salespeople reveals that resistance remains, particularly in relation to the dehumanization of the customer relationship. Drawing on Kelman's theory of social influence (1958), this research presents three processes explaining differentiated usage strategies: minimalist usage (compliance with managerial directives), usage by imitation of peers (identification), intrinsic usage (internalization) when salespeople recognize the intrinsic benefits of MSA (time savings, better inventory management). The study recommends personalized support and modulated adoption of MSAs, enabling salespeople to comply with managerial expectations while preserving congruence with their professional values, in order to reduce reluctance to use MSAs by salespeople. |
| Keywords: | Usage strategies, In-Store technologies, Social Influence Theory, Mobile Service Assistant, Mobile Service Assistant Social Influence Theory In-Store technologies Usage strategies |
| Date: | 2025–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05306603 |
| By: | Nicholas Economides (Stern School of Business, New York University, New York, NY, USA); Przemyslaw Jeziorski (Haas School of Business, UC Berkeley, Berkeley, CA, USA) |
| Abstract: | In many developing countries of Africa and Asia, cell phones are used (i) to transfer money across individuals; (ii) to securely self-transport money, and (iii) to save/store money. These banking networks ride on top of wireless telecommunications networks. Traditionally, each banking network was confined to the network of a telecom carrier, and transfers were available only within the carrier’s network, making it incompatible with banking networks of other carriers. In Tanzania, mobile banking under incompatibility was well established for a decade until September 2015 when the second, third, and fourth largest carriers established full compatibility of their banking networks. Analyzing a comprehensive dataset of banking transactions provided by a large telecom carrier in Tanzania, this paper discusses pricing under compatibility, contrasts with pricing under incompatibility. We analyze the transaction termination fees (cash-out fees) in this unregulated environment, and assess the individual and collective incentives for compatibility, noting that the largest carrier has remained incompatible. Despite very high prices for transfers across networks set up commercially under compatibility, the introduction of compatibility resulted in substantial consumer surplus gains. We calculate further potential welfare gains under a number of counterfactual regulatory scenarios. |
| Keywords: | mobile money network, compatibility, interoperability, transaction costs, Tanzania, banking, social network, Tanzania, Tigo, Airtel, Vodacom |
| JEL: | O16 O17 O33 L14 L15 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:net:wpaper:2510 |
| By: | Demary, Markus; Taft, Niklas |
| Abstract: | Bei Stablecoins handelt es sich um Finanzinstrumente, die ähnlich wie Geldmarktfonds funktionieren und in US-Staatsanleihen investieren. Jedoch werden bei Stablecoins keine Fondsanteile, sondern Kryptowerte erworben. Wie bei den Eurodollars in den 1960er und 1970er Jahren handelt es sich um finanzielle Verbindlichkeiten, die außerhalb des US-Bankensystems geschaffen wurden. Mit dem GENIUS-Gesetz (Guiding and Establishing National Innovation for U.S. Stablecoins of 2025) zielen die USA auf die Förderung des Marktes für Stablecoins ab. Die Auswirkungen einer verstärkten Vernetzung von Stablecoins mit dem weltweit größten und liquidesten Markt für Staatsanleihen ist für die globale Finanzmarktstabilität jedoch bedeutsam. Die Staatsverschuldung der USA beläuft sich aktuell auf rund 122 Prozent des Bruttoinlandsprodukts (BIP). Sie ist auch deshalb gestiegen, weil sich die Lebenserwartung der Bevölkerung von 70 Jahren im Jahr 1966 auf 78 Jahre im Jahr 2024 verlängert hat. Dies hat dazu geführt, dass die Ausgaben für Medicare und Medicaid von jeweils 0, 2 Prozent des BIP auf 3, 6 und 3, 1 Prozent des BIP und die Ausgaben der Rentenversicherung im gleichen Zeitraum von 2, 4 Prozent auf 4, 8 Prozent gestiegen sind. Für die wachsende Staatsverschuldung der USA ist auch verantwortlich, dass sich zwischen Staatsausgaben und Steuereinnahmen im Zeitablauf eine Schere aufgetan hat. Zudem werden rund 13 Prozent der Steuerschuld nicht eingetrieben. Trotz der hohen Ausgaben im Vergleich zu den Einnahmen finanzieren ausländische Anleger diese Verschuldung, da die USA über den bedeutendsten sicheren Hafen für Investoren verfügen und der US-Dollar die bedeutendste Reserve- und Transaktionswährung darstellt. US-Staatsanleihen gelten dabei als das sicherste Finanzinstrument. Aufgrund der global hohen Nachfrage nach diesem Safe Asset, verfügen die USA über sehr günstige Finanzierungsbedingungen. Grund zur Sorge bereitet aber eine Entdollarisierung, d.h. eine Verringerung der Verwendung des Dollars im Welthandel und bei Finanztransaktionen. Eine Förderung des Marktes für Stablecoins soll der Entdollarisierung entgegenwirken. Ähnlich wie die Geldmarktfonds können sie die Liquiditätshaltung von Haushalten und Unternehmen mit der Staatsfinanzierung verbinden. Die Vernetzung von US-Staatsverschuldung und Stablecoins könnte Gefahren für die globale Finanzstabilität mit sich bringen. Denn wenn der Markt für US-Staatsanleihen unter Druck geraten würde, dann sind Stablecoins für ihre Anleger nicht länger ein sicherer Vermögenswert. Ähnlich wie bei Geldmarktfonds besteht bei Stablecoins ein Run-Risiko. In Panik geratene Kunden können ihr Geld sofort abziehen, was einen sofortigen Verkaufsdruck auslöst und Notfallverkäufe auf der Aktivseite des Stablecoins nach sich ziehen kann, welche zu einem Preisverfall bei US-Staatsanleihen führen können. Aufgrund der hohen globalen Bedeutung des US-Kapitalmarkts als sicherer Hafen könnte sich daraus eine globale Finanzmarktkrise entwickeln. |
| Abstract: | Stablecoins are financial instruments which work similar to money market funds, and which invest in US government bonds. Stablecoins, however, issue cryptocurrencies instead of fund shares. Similar to the Eurodollar market in the 1960ies and the 1970ies are financial liabilities created, which are issued outside the US capital market. With the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins of 2025) the USA aim to promote the market for stablecoins. The consequences of a deepening interconnection between stablecoins and the globally largest and most liquid market for government bonds are crucial for global financial stability. The government debt of the USA sums currently to 122 percent of its gross domestic product (GDP). It has increased inter alia because the life expectancy of the US population has increased from 70 years in the year 1966 to 78 years in the year 2024. Demographic change has contributed to the increased expenditures for Medicare and Medicaid from 0.2 percent of the GDP each to 3.6 and 3.1 percent of the GDP and it has contributed to increased expenditures for Social Security from 2.4 percent to 4.8 percent of the GDP over the same time span. Also responsible for the growing debt ratio is the growing gap between government spending and tax revenues. Moreover, 13 percent of the tax revenues in the USA cannot be collected. Despite the high government expenditures in relation to the tax revenues are foreign investors willing to finance the government debt, because the USA is the globally most important safe haven for investors and the US-Dollar is the most important reserve and transaction currency in global foreign exchange markets. USTreasuries are the globally most important safe assets. The high global demand for this safe asset contributes to the low financing cost of the USA. One reason to worry is the process of de-dollarization, which is a reduction in the use of the US-Dollar in global trade and financial transactions. The promotion of the market for stablecoins could lessen the dedollarization. Similar to money market funds could stablecoins connect the liquidity demand of households and companies to government financing. However, the interconnection between the US government debt and stablecoins could lead to threats to global financial stability. If the market for US government bonds would come under pressure, stablecoins would no longer be regarded as safe money by their holders. Similar to money market funds, stablecoins would be prone to a run-risk. If panicking holders of a large stablecoin could try to withdraw money, this will force its management to enact fire-sales of the fund's bonds which could trigger a price drop of US government bonds. Because of the high global importance of the US capital market as a safe haven this could trigger a global financial crisis. |
| JEL: | E44 F31 F34 H5 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwkrep:328257 |
| By: | Elise Penalva-Icher (IRISSO - Institut de Recherche Interdisciplinaire en Sciences Sociales - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Paola Tubaro (ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - GENES - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - GENES - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - GENES - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique); Fabien Eloire (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | How do digital platforms affect coordination in the restaurant market? In particular, how do they reshape firms' positions in the quality space and their dependence on both consumers' valuations and competitors' choices? Focusing on the case of a widely used platform for restaurant booking and reviewing, we analyze the dine-in services market in the city of Lille, France. In line with economic sociology's definition of markets as concrete social spaces, we frame these restaurants as a producer market in which multiple quality conventions coexist. We use sequential mixed methods and data (observations and interviews, web-scraping and business data) to show that platforms rationalize firms' practice of observing one another as a basis for making decisions on volume and quality. The rise of digital platforms provides producers with devices that amplify their view of competitors, standardize their offerings and support the stability of their business choices over time, conditional on spatial constraints and quality positioning. |
| Keywords: | Harrison White, Digital Platforms, Quality, Valuation, Markets, Economic Sociology |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05281701 |
| By: | Vabuk Pahari; Andrea Canidio |
| Abstract: | We analyze 15, 097 blocks proposed for inclusion in Ethereum's blockchain over an 8-minute window on December 3, 2024, during which 38 blocks were added to the chain. We classify transactions as exclusive -- present only in blocks from a single builder -- or private -- absent from the public mempool but included in blocks from multiple builders. We find that exclusive transactions account for 84% of the total fees paid by transactions in winning blocks. Furthermore, we show that exclusivity cannot be fully explained by exclusive relationships between senders and builders: about 7% of all exclusive transactions included on-chain, by value, come from senders who route exclusively to a single builder. Analyzing transaction logs shows that some exclusive transactions are duplicates or variations of the same strategy, but even accounting for that, the share of the total fees paid by transactions in winning blocks is at least 77.2%. Taken together, our findings highlight that exclusive transactions are the dominant source of builder revenues. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.16052 |
| By: | Carlo Zarattini (Concretum Group); Alberto Pagani (University of Parma); Andrea Barbon (University of St. Gallen; University of St.Gallen) |
| Abstract: | In recent years, cryptocurrencies have attracted significant attention from both retail traders and large institutional investors. As their involvement in digital assets grows, so does their interest in active and risk-aware investment frameworks. This paper applies a well-established trend-following methodology, successfully deployed for decades in traditional asset classes, to Bitcoin, and then extends the analysis to a comprehensive, survivorship bias-free dataset covering all cryptocurrencies traded since 2015, to evaluate whether its robustness persists in the emerging digital asset space. We propose an ensemble approach that aggregates multiple Donchian channel-based trend models, each calibrated with different lookback periods, into a single signal, as well as a volatility-based position sizing method. This model, applied to a rotational portfolio of the top 20 most liquid coins, achieved notable net-of-fees returns, with a Sharpe ratio above 1.5 and an annualized alpha of 10.8% versus Bitcoin. While assessing the impact of transaction costs, we propose a straightforward yet effective portfolio technique to mitigate these expenses. Finally, we investigate correlations between crypto-focused trend-following strategies and those applied to traditional asset classes, concluding with a discussion on how investors can execute the proposed strategy through both on-chain and off-chain implementations. |
| Keywords: | Trading Systems, Algo Trading, Momentum, Trend-Following, Cryptocurrencies, Risk Management, Technical Analysis, Decentralized Exchanges, Blockchain, Decentralized Finance |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2580 |
| By: | Chi-Sheng Chen; Aidan Hung-Wen Tsai |
| Abstract: | We formulate automated market maker (AMM) \emph{rebalancing} as a binary detection problem and study a hybrid quantum--classical self-attention block, \textbf{Quantum Adaptive Self-Attention (QASA)}. QASA constructs quantum queries/keys/values via variational quantum circuits (VQCs) and applies standard softmax attention over Pauli-$Z$ expectation vectors, yielding a drop-in attention module for financial time-series decision making. Using daily data for \textbf{BTCUSDC} over \textbf{Jan-2024--Jan-2025} with a 70/15/15 time-series split, we compare QASA against classical ensembles, a transformer, and pure quantum baselines under Return, Sharpe, and Max Drawdown. The \textbf{QASA-Sequence} variant attains the \emph{best single-model risk-adjusted performance} (\textbf{13.99\%} return; \textbf{Sharpe 1.76}), while hybrid models average \textbf{11.2\%} return (vs.\ 9.8\% classical; 4.4\% pure quantum), indicating a favorable performance--stability--cost trade-off. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.16955 |
| By: | Becker-Ritterspach, Florian A. A. |
| Abstract: | This paper provides a stylized comparison of digital and traditional multinational enterprises (MNEs), examining how they differ in the antecedents, processes, strategies, and consequences of internationalization. Traditional MNEs expand gradually through tangible investments, foreign direct investment, and location-bound advantages. Digital MNEs, in contrast, rely on asset-light, platform-based models that allow for near-instant global reach, reshaping established patterns of international business. The comparison highlights that digital firms face reduced liabilities of foreignness but heightened liabilities of outsidership, shifting the internationalization logic from internalization toward externalization and ecosystem orchestration. While digital internationalization offers efficiency, scalability, and innovation, it also generates new risks, including regulatory challenges, dependency on external ecosystems, and environmental implications. By juxtaposing these "ideal types, " the paper demonstrates both the continuities and discontinuities between digital and traditional internationalization paths. It questions the explanatory power of established IB frameworks and points to the relevance of emerging concepts such as ecosystem-specific and externalization advantages for understanding the evolving nature of global business in the digital age. |
| Abstract: | Dieser Beitrag liefert einen stilisierten Vergleich digitaler und traditioneller multinationaler Unternehmen (MNEs) und untersucht, wie sie sich in den Voraussetzungen, Prozessen, Strategien und Konsequenzen der Internationalisierung unterscheiden. Traditionelle MNEs expandieren schrittweise über materielle Investitionen, ausländische Direktinvestitionen und standortgebundene Vorteile. Digitale MNEs hingegen basieren auf "asset-light", plattformgestützten Geschäftsmodellen, die eine nahezu sofortige globale Reichweite ermöglichen und damit etablierte Muster des internationalen Geschäfts grundlegend verändern. Der Vergleich zeigt, dass digitale Unternehmen zwar geringere "Liabilities of Foreignness" (Nachteile der Auslandstätigkeit), dafür aber verstärkte "Liabilities of Outsidership" (Außenseiter-Nachteile) zu bewältigen haben. Dies verschiebt die Logik der Internationalisierung von Internalisierung hin zu Externalisierung und Ökosystem-Steuerung. Während digitale Internationalisierung Effizienz, Skalierbarkeit und Innovation eröffnet, bringt sie zugleich neue Risiken mit sich, darunter regulatorische Herausforderungen, Abhängigkeiten von externen Ökosystemen und ökologische Implikationen. Durch die Gegenüberstellung dieser "Idealtypen" werden sowohl Kontinuitäten als auch Brüche zwischen digitalen und traditionellen Internationalisierungspfaden deutlich. Das Papier hinterfragt die Erklärungskraft etablierter Theorien des International Business und verweist auf die Relevanz neuer Konzepte wie ökosystemspezifische und Externalisierungsvorteile, um die sich wandelnde Natur des globalen Geschäfts im digitalen Zeitalter zu verstehen |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bpswps:328271 |
| By: | Lorie Logan |
| Abstract: | Dallas Fed President Lorie Logan delivered these remarks at the Chicago Payments Symposium. |
| Keywords: | payments |
| Date: | 2025–10–08 |
| URL: | https://d.repec.org/n?u=RePEc:fip:feddsp:101918 |
| By: | Samiha Tariq |
| Abstract: | This paper studies how visual traits and market cycles shape prices in NFT markets. Using 94, 039 transactions from 26 major generative Ethereum collections, the analysis extracts 196 machine-quantified image features (covering color, composition, palette structure, geometry, texture, and deep learning embeddings), then applies a three-stage filter process to identify stable predictors for hedonic regression. A static mixed-effects model shows that market sentiment and transparent, interpretable image traits have significant and independent pricing power: higher focal saturation, compositional concentration, and curvature are rewarded, while clutter, heavy line work, and dispersed palettes are discounted; deep embeddings add limited incremental value conditional on explicit traits. To assess state dependence, the study estimates a Bayesian dynamic mixed-effects panel with cycle effects and time-varying coefficients for a salient image attribute (Composition Focus - Saturation). Collection-level heterogeneity ("brand premia") is absorbed by random effects. The time-varying coefficients exhibit regime sensitivity, with stronger premia in expansionary phases and weaker or negative loadings in downturns, while grand-mean effects remain small on average. Overall, NFT prices reflect both observable digital product characteristics and market regimes, and the framework offers a cycle-aware tool for asset pricing, platform strategy, and market design in digital art markets. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.24879 |
| By: | Karen Mathiasen (Center for Global Development); Nico Martinez (Center for Global Development) |
| Abstract: | Stablecoins, a form of cryptocurrency pegged to and backed by another asset (usually US dollars), are reshaping the global financial landscape. Unlike fiat currency, they can be issued by private companies, and barriers to entry are relatively low. Stablecoins are appealing because they can process cross-border transactions much faster and more cheaply than conventional payments systems such as SWIFT and Western Union and offer a secure store of value. While most stablecoin activity now involves buying and selling other cryptocurrencies, this is starting to change, with increased stablecoin use for remittances and international settlements. The passage of the US GENIUS Act has accelerated their legitimacy and adoption, helping drive stablecoin transaction volumes to trillions of dollars. Yet their proliferation also poses substantial risks, including banking sector instability, regulatory arbitrage, weaker transmission of monetary policy, and the spread of illicit finance, all of which could destabilize the global financial system. In this paper, we explore these trends and discuss what the international financial institutions should be doing to support countries as they navigate the stablecoin phenomenon. We argue that the International Monetary Fund and World Bank should be much more proactive, and we propose a new agenda for action, starting with the adoption of clear criteria for country engagement on stablecoins and strengthened surveillance activities. |
| Date: | 2025–10–16 |
| URL: | https://d.repec.org/n?u=RePEc:cgd:ppaper:365 |
| By: | Hongzhe Wen; R. S. M. Lau |
| Abstract: | Stablecoins have emerged as a significant component of global financial infrastructure, with aggregate market capitalization surpassing USD250 billion in 2025. Their increasing integration into payment and settlement systems has simultaneously introduced novel channels of systemic exposure, particularly liquidity risk during periods of market stress. This study develops a hybrid monetary architecture that embeds fiat-backed stablecoins within a central bank-anchored framework to structurally mitigate liquidity fragility. The proposed model combines 100 percent reserve backing, interoperable redemption rails, and standing liquidity facilities to guarantee instant convertibility at par. Using the 2023 SVB USDC de-peg event as a calibrated stress scenario, we demonstrate that this architecture reduces peak peg deviations, shortens stress persistence, and stabilizes redemption queues under high redemption intensity. By integrating liquidity backstops and eliminating maturity-transformation channels, the framework addresses run dynamics ex ante rather than through ad hoc intervention. These findings provide empirical and theoretical support for a hybrid stablecoin-CBDC architecture that enhances systemic resilience, preserves monetary integrity, and establishes a credible pathway for stablecoin integration into regulated financial systems. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.10469 |
| By: | Currency Issue Department (Bank of Japan) |
| Abstract: | The Bank of Japan introduced a new series of Bank of Japan notes on July 3, 2024. The transition to the new Bank of Japan notes has progressed steadily. Recently, however, as illustrated by the advancement of cashless payments, the environment surrounding cash has changed significantly, and the ratio of the new Bank of Japan notes to the total volume of banknotes in circulation has remained at a low level compared with when the Bank of Japan notes were renewed in 2004. This is thought to be due to (1) the increase in banknotes in circulation; (2) the decrease in receipts and payments of banknotes between financial institutions and the Bank; and (3) the difference in the scale of demand for the new Bank of Japan notes, reflecting differences in social conditions. The Bank of Japan will continue to make every effort to ensure the smooth circulation of the new Bank of Japan notes. |
| Date: | 2025–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:boj:bojrev:rev25e09 |
| By: | Syngjoo Choi; Bongseop Kim; Young-Sik Kim; Ohik Kwon; Soeun Park |
| Abstract: | To overcome the lack of data in predicting the payment preference for central bank digital currency (CBDC), we conducted a discrete choice experiment that varied the attributes of payment methods among over 3, 500 participants in Korea. We identified key attributes, such as the discount rate and the issuance form, that shape the demand for payment methods. The predicted usage shares of existing payment methods closely align with their actual usage patterns in Korea, which lends credible support for the external validity of our experimental design. Building on this validation, we further predict that CBDC, when introduced, will be preferred over cash and mobile fast payment but less preferred than credit and debit cards, with its adoption rate as the most preferred payment method ranging 19−27% of respondents. |
| Keywords: | payment preference, retail CBDC, discrete choice experiment |
| JEL: | E40 E50 C90 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1296 |
| By: | Luis Araujo; Leo Ferraris; Marco Mantovani; Daniela Puzzello |
| Abstract: | Sovereign digital currencies are about to be launched in several countries. A key feature of this intangible counterpart of cash is its traceability. Using a microfounded monetary model, we show that traceability can be exploited to incentivize liquidity transfers among traders, thus stimulating production and trade. We empirically test the theoretical prediction through a controlled laboratory experiment. We find that sovereign digital currency stimulates production and trade, provided that the authorities actively help promote its acceptability. |
| Keywords: | digital currency, cash, monetary policy, laboratory experiment |
| JEL: | E40 C90 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:mib:wpaper:557 |
| By: | William Bergman (Loyola University) |
| Abstract: | This paper examines the Federal Reserve's current financial losses—unprecedented in scale—and the questionable accounting practices it uses to downplay their impact. It argues that the Fed's self-defined accounting standards, particularly the creation of a "deferred asset" to mask negative equity, obscure the fiscal consequences for the U.S. government and taxpayers. The analysis connects today's losses to longstanding institutional practices, notably the Fed's flawed cost-recovery accounting for its Fedwire payment system. These issues first emerged in the late 1990s and early 2000s, when the author, then a Fed staffer, challenged the internal logic used to claim that Fedwire guaranteed payments and still avoided subsidies. The paper includes as an appendix the original 2002 draft, "Fedwire: A Subsidy That Fully Recovers Its Cost?", which helped reveal the moral hazard and accounting inconsistencies that contributed to the 2008 crisis and continue to shape central bank risk and governance today. |
| Keywords: | Federal Reserve, Central bank accounting, Fedwire, daylight overdrafts, Payment systems, financial crisis, monetary policy, financial regulation |
| JEL: | E0 E58 E42 G28 H83 L50 |
| Date: | 2024–07–30 |
| URL: | https://d.repec.org/n?u=RePEc:thk:wpaper:inetwp237 |