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on Payment Systems and Financial Technology |
| By: | Ngunza Maniata, Kevin; Waminuku Manzambi, Tresor |
| Abstract: | The rapid rise of financial technologies (fintechs) in Africa has significantly expanded access to financial services, especially through mobile money. While this growth has improved financial inclusion and household resilience, its impact on structural transformation remains limited. This paper examines whether and how fintechs can serve as a driver of productive modernization, drawing on a literature review, case studies (Kenya, Nigeria, Francophone Africa), and a stylized analytical framework. Findings show that digital finance enhances transaction efficiency and access to basic services, but generates lasting macroeconomic effects only when integrated with industrial policy, productive financing, human-capital development, and stronger links between firms and modern value chains. |
| Keywords: | Fintech; Financial inclusion; Structural transformation; Africa; Economic development; Digital economy |
| JEL: | E26 G21 L26 O14 O16 O33 |
| Date: | 2025–12–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127303 |
| By: | Swati Sachan; Dale S. Fickett |
| Abstract: | This research introduces the Decentralized Finance (DeFi) TrustBoost Framework, which combines blockchain technology and Explainable AI to address challenges faced by lenders underwriting small business loan applications from low-wealth households. The framework is designed with a strong emphasis on fulfilling four crucial requirements of blockchain and AI systems: confidentiality, compliance with data protection laws, resistance to adversarial attacks, and compliance with regulatory audits. It presents a technique for tamper-proof auditing of automated AI decisions and a strategy for on-chain (inside-blockchain) and off-chain data storage to facilitate collaboration within and across financial organizations. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.00142 |
| By: | Lay, Sok Heng; Sam, Vichet |
| Abstract: | Dollarization poses significant challenges to monetary policy effectiveness and heightens economic vulnerability to external shocks, prompting calls for de-dollarization and greater promotion of local currency use. This paper investigates the role of digital payment in fostering the use of Cambodia’s local currency, the Khmer riel (KHR), in an economy that has remained heavily dollarized since the 1990s. First, we develop a simple theoretical model to explain how digital payment has the potential to promote the use of KHR. Second, using unique survey data collected in 2023 from workers in Cambodia’s garment, footwear, and textile sectors, we apply two advanced econometric approaches to address endogeneity in digital payment adoption: i/-A linear regression model with endogenous treatment effects estimated via maximum likelihood, and ii/-An endogenous treatment-effects model allowing for heterogenous impacts of digital payment based on households’ characteristics. These models enable comparison between observed outcomes and counterfactual scenarios—that is, what individuals’ KHR usage would have been had they use or do not use digital payment. Empirical results indicate that digital payment significantly increases KHR usage, raising total expenditure in KHR by 4.52 percent to 10.41 percent relative to the case without digital payment. However, the analysis also reveals important demographic disparities: younger, urban, and more educated individuals show stronger preferences for the US dollar. Hence, while digital payment supports broader use of the local currency, their long-term effectiveness relies on complementary measures such as promoting KHR-denominated pricing, salary payments, and expanding KHR-linked digital services. Therefore, the study emphasizes the necessity of coordinated efforts among relevant stakeholders to ensure sustained progress in the promotion of local currency. |
| Keywords: | Digital payment, Dollarization, Local Currency, Endogenous treatment effects |
| JEL: | D12 E42 O33 |
| Date: | 2025–08–27 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126747 |
| By: | Adib Rahman (University of Hawaii); Liang Wang (University of Hawaii) |
| Abstract: | We investigate the effects of central bank digital currency (CBDC) issuance in an economy where individuals can evade taxes by using cash. Our tractable model features agent heterogeneity with unobservable idiosyncratic shocks and voluntary exchange, where CBDC and cash compete as payment methods. CBDC's transparency enables governments to collect a labor tax that proves non-distortionary in our quasi-linear environment. Agents with higher marginal utility voluntarily pay fixed fees to access interest-bearing CBDC when their debt constraints bind, allowing the implementation of optimal policy with strictly positive inflation and nominal interest rates. We demonstrate how CBDC enables redistribution between agent types that is not possible in cash-only economies. We conjecture that an optimal CBDC policy involves higher nominal interest rates and lower inflation compared to cash regimes. By reducing tax evasion incentives, the introduction of CBDC can increase both output and aggregate welfare. |
| Keywords: | Cash, CBDC, Labor Tax, Tax Evasion, Monetary Policy |
| JEL: | E42 E58 H21 H26 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:hai:wpaper:202505 |
| By: | Ressita Ramadhani (Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | Central bank digital currencies (CBDCs) offer ASEAN countries an opportunity to modernise payments, enhance financial inclusion, and support economic integration. Countries such as Malaysia, Thailand, and Singapore are actively piloting CBDC initiatives, exploring both wholesale and retail applications, and testing cross-border interoperability. Global pilot projects – including mBridge, Dunbar, and Cedar x Ubin+ – provide valuable insights for ASEAN, demonstrating benefits in efficiency, transparency, and risk management. At the same time, implementing CBDCs presents challenges: smaller economies face potential capital flight, regulatory gaps remain in KYC, AML, and CFT frameworks, and CRS adoption is uneven. To fully harness CBDCs’ potential, ASEAN must establish standardised cross-border payment mechanisms, strengthen regulatory and financial security frameworks, and enhance digital literacy for governments, businesses, and citizens. By addressing these risks and leveraging regional collaboration, ASEAN can position itself as a competitive and resilient player in the evolving global digital economy. Latest Articles |
| Date: | 2025–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:pb-2025-10 |
| By: | Michele Bisceglia (Center for Algorithms, Data, and Market Design at Yale (CADMY)); Alessandro Bonatti (MIT Sloan School of Management); Fiona Scott Morton (Yale School of Management) |
| Abstract: | We study how privacy regulation affects menu pricing by a monopolist platform that collects and monetizes personal data. Consumers differ in privacy valuation and sophistication: naive users ignore privacy losses, while sophisticated users internalize them. The platform designs prices and data collection options to screen users. Without regulation, privacy allocations are distorted and naive users are exploited. Regulation through privacy-protecting defaults can create a market for information by inducing payments for data; hard caps on data collection protect naive users but may restrict efficient data trade. |
| Date: | 2025–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:cwl:cwldpp:2474 |
| By: | Nicole Jonker; Bo Beeker; Hans Brits |
| Abstract: | This study investigates generational differences in the importance Dutch bank customers attach to their bank’s contributions to environmental sustainability, social inclusion, and peace, security and justice. Survey results from over 4, 000 respondents reveal that individuals from the Silent and Baby Boom generations consistently value banks’ roles in climate action, nature preservation, and social accessibility higher than the other generations. While all generations prioritise core banking services such as secure savings and reliable payments, individuals from the Silent and Baby Boom generations place greater emphasis on the availability of physical branches, support for digitally vulnerable individuals, and banks’ involvement in cybersecurity, military defence, and anti-money laundering. These patterns remain robust after controlling for demographic characteristics, financial literacy, health and digital skills, suggesting that formative experiences and values are key drivers. The findings highlight among others the need for banks and regulators to balance digital innovation and ESG ambitions with continued attention to accessibility and trust across all generations. |
| Keywords: | banks; generations; social goals; digital inclusion; resilience, sustainability |
| JEL: | D12 G21 M14 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:dnb:dnbwpp:849 |
| By: | Carin van der Cruijsen; Dörthe Kunkel; Rick Nijkamp |
| Abstract: | This study highlights the multifaceted nature of household payment task division, revealing that a broad spectrum of factors contributes to who takes the lead in executing household payments. The allocation of specific payment tasks is related to partners’ differences in personality traits, enjoyment of payment tasks and available time. Disparities in income and assets also play a significant role, alongside differences in payment knowledge, digital payment experience, and money management skills. Furthermore, individuals tend to replicate the division of payment tasks observed in others. Traditional patterns whereby men manage housing-related payments and women handle grocery expenses, appear across all generations but are most prevalent among the oldest. Greater involvement in household payment tasks is associated with increased financial influence within the household. It also facilitates the ability to take over a partner’s payment responsibilities when needed and enhances early awareness of potential financial issues. In a substantial number of households, one partner is solely responsible for managing specific payments. Strong payment knowledge, digital payment experience, and staying informed about the partner’s payment activities support a smooth transition of responsibilities when necessary. |
| Keywords: | household payments; division of tasks; financial inclusion; gender gap; financial decisions; |
| JEL: | D12 D83 J16 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:dnb:dnbwpp:851 |
| By: | Tao Liu (Central University of Finance and Economics); Dong Lu (Renmin University of China); Liang Wang (University of Hawaii) |
| Abstract: | There have been two competing views on the structure of the international monetary system: one sees it as a unipolar system with a dominant currency, such as the U.S. dollar, while the other argues that a multipolar system has been the rule, not the exception. We propose a unified theoretical framework to reconcile these two views. In a micro-founded monetary model, we examine the interactions of two essential roles played by international currencies, the medium of exchange and the store of value, and highlight the importance of abundant safe asset supplies. When the two roles reinforce each other, a unipolar equilibrium exists. However, when one currency is unable to serve as sufficient safe assets for international trade transactions, the two roles work against each other, and agents have the incentive to diversify their portfolio, giving rise to a multipolar system. The effects of monetary policy, fiscal policy, and their combinations crucially depend on the total supply of safe assets and the relative importance of the two functions of international currencies. The structure of the international monetary system could be influenced by various policies such as monetary policy, fiscal policy, and financial sanctions. A calibrated model shows that, all else equal, USD could lose its dominance if the US fiscal capacity deteriorates by 34\% or the US economy size shrinks by 32%. |
| Keywords: | International Currency, Money, Multipolar, Safe Assets, Unipolar |
| JEL: | E42 E52 F33 F40 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:hai:wpaper:202504 |
| By: | Giulio Caldarelli |
| Abstract: | As data is an essential asset for any Web3 application, selecting an oracle is a critical decision for its success. To date, academic research has mainly focused on improving oracle technology and internal economics, while the drivers of oracle choice on the client side remain largely unexplored. This study fills this gap by gathering insights from leading Web3 protocols, uncovering their rationale for oracle selection and their preferences when deciding whether to outsource or internalize data request mechanisms. The collected data covers more than 55% of the DeFi market cap and is obtained exclusively by protocol executives, board members, or delegates. Insights support the view that protocol choices are tied to technological dependencies, where immutability of smart contracts amplifies lock-in, preventing agile switching among data providers. Furthermore, when viable third-party solutions exist, protocols overwhelmingly prefer outsourcing rather than building and maintaining internal oracle mechanisms. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.03088 |
| By: | Andrzej Tokajuk; Jaros{\l}aw A. Chudziak |
| Abstract: | Forecasting cryptocurrency prices is hindered by extreme volatility and a methodological dilemma between information-scarce univariate models and noise-prone full-multivariate models. This paper investigates a partial-multivariate approach to balance this trade-off, hypothesizing that a strategic subset of features offers superior predictive power. We apply the Partial-Multivariate Transformer (PMformer) to forecast daily returns for BTCUSDT and ETHUSDT, benchmarking it against eleven classical and deep learning models. Our empirical results yield two primary contributions. First, we demonstrate that the partial-multivariate strategy achieves significant statistical accuracy, effectively balancing informative signals with noise. Second, we experiment and discuss an observable disconnect between this statistical performance and practical trading utility; lower prediction error did not consistently translate to higher financial returns in simulations. This finding challenges the reliance on traditional error metrics and highlights the need to develop evaluation criteria more aligned with real-world financial objectives. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.04099 |
| By: | Leonidas Anthopoulos (Department of Business Administration, University of Thessaly, 41500 Geopolis Campus, Larissa Ringroad, Larissa, Thessaly, Greece Author-2-Name: Elli Kontogianni Author-2-Workplace-Name: Department of Business Administration, University of Thessaly, 41500 Geopolis Campus, Larissa Ringroad, Larissa, Thessaly, Greece Author-3-Name: Anastasia Malama Author-3-Workplace-Name: Department of Business Administration, University of Thessaly, 41500 Geopolis Campus, Larissa Ringroad, Larissa, Thessaly, Greece Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - The digital revolution and the rise of the metaverse are transforming tourism, creating new value opportunities for businesses and travelers. This study examines the adoption of the metaverse in the Greek tourism industry, using the Technology Acceptance Model (TAM). Methodology/Technique - Data was collected through a questionnaire distributed to Greek tourism businesses, investigating perceived usefulness, ease of use, social influence, business satisfaction, and concerns about cost and personal data protection. Quantitative analysis shows that, despite financial and organizational constraints, the adoption of the metaverse is considered inevitable. Finding - This study enriches the TAM literature from a new technological context and, in practice, provides guidelines for the strategic digital transformation of tourism in Greece. The novelty of this study lies in applying the TAM model to examine the adoption of the metaverse in the tourism sector, an area that has not been widely examined. Novelty - It also adds new factors, such as business satisfaction, expected performance, and behavioral intention, to provide a more complete understanding of metaverse adoption in tourism. Type of Paper - Empirical" |
| Keywords: | Metaverse; Tourism Industry; TAM; Technology Adoption; Virtual Tourism; Sustainable Development |
| JEL: | L83 M15 D12 O33 |
| Date: | 2025–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:gtr:gatrjs:gjbssr672 |
| By: | Yuichi IKEDA; Hideaki AOYAMA; Tetsuo HATSUDA; Tomoyuki SHIRAI; Taro HASUI; Yoshimasa HIDAKA; Krongtum SANKAEWTONG; Hiroshi IYETOMI; Yuta YARAI; Abhijit CHAKRABORTY; Yasushi NAKAYAMA; Akihiro FUJIHARA; Pierluigi CESANA; Wataru SOUMA |
| Abstract: | This study proposes an artificial intelligence framework to detect price surges in crypto assets by leveraging network features extracted from transaction data. Motivated by the challenges in Anti-Money Laundering, Countering the Financing of Terrorism, and Counter-Proliferation Financing, we focus on structural features within crypto asset networks that may precede extreme market events. Building on theories from complex network analysis and rate-induced tipping, we characterize early warning signals. Granger causality is applied for feature selection, identifying network dynamics that causally precede price movements. To quantify surge likelihood, we employ a Boltzmann machine as a generative model to derive nonlinear indicators that are sensitive to critical shifts in transactional topology. Furthermore, we develop a method to trace back and identify individual nodes that contribute significantly to price surges. The findings have practical implications for investors, risk management officers, regulatory supervision by financial authorities, and the evaluation of systemic risk. This framework presents a novel approach to integrating explainable AI, financial network theory, and regulatory objectives in crypto asset markets. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25113 |
| By: | Cam Donohoe; Youming Liu |
| Abstract: | As economies across the world continue to digitize, debates around the design and efficiency of national infrastructures for electronic payments have gained added relevance. Central to these debates is the question of how many electronic funds transfer (EFT) systems can viably coexist within a jurisdiction while achieving scale economies to ensure that average cost is minimized, a threshold that largely depends on the shape of the cost function. In this paper, we conduct a cross-country meta-analysis using data from 13 social cost studies across 9 jurisdictions between 2001 and 2016. We quantitatively estimate a cost function relating the total transaction volume to the per-transaction cost and interpret its parameters in terms of fixed and variable costs. We find a rapidly decreasing, convex cost curve that plateaus quickly at around one billion annual transactions. Additionally, we estimate the marginal cost of an EFT to be approximately $0.55 per transaction, expressed in 2025 Canadian dollars, and the total fixed cost to be approximately $83 million per year. |
| Keywords: | Payment Clearing and Settlement Systems, Financial Institutions, Financial System Regulation and Policies |
| JEL: | E42 E58 H54 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocadp:25-17 |
| By: | Haibo Wang; Lutfu Sua; Burak Dolar |
| Abstract: | This paper examines the relationship between trade and financial openness, as well as the operational efficiency and growth of Turkish banks, from 2010 to 2023. Utilizing CAMELG-DEA and dynamic panel data analysis, the study finds that increased trade openness significantly enhances banking efficiency, primarily due to heightened demand for banking services related to international trade. Financial openness further boosts growth by facilitating capital flows, expanding banks' credit portfolios, and increasing fee income from cross-border transactions. However, poverty levels have a negative impact on bank performance, reducing financial intermediation and innovation opportunities. The results underscore the crucial role of trade and financial openness in fostering banking sector growth in developing economies. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.05148 |
| By: | Thomas Lammer; Daniel Rees; Tara Rice; Takeshi Shirakami |
| Abstract: | The G20 Roadmap for enhancing cross-border payments has created significant momentum. Most international policy actions are completed, providing a solid foundation for addressing persistent cross-border payment challenges and fostering a more inclusive global payments ecosystem. However, it is unlikely that the end-2027 targets envisaged by the G20 will be achieved on time, and improvements in outcomes for end users have so far been modest. Timely and consistent implementation of the Roadmap priorities, both within and beyond G20 jurisdictions, is essential to achieve the Roadmap's goals and must be accompanied by robust public-private collaboration. |
| Date: | 2025–12–11 |
| URL: | https://d.repec.org/n?u=RePEc:bis:bisblt:119 |
| By: | Sjaak Hurkens; Matthew Ellman |
| Abstract: | This paper examines crowdfunding of a risky project with constant returns to scale. The crowdfunder's chosen threshold and interest rate jointly determine profit and welfare via information aggregation and investors' information acquisition and bidding decisions. At fixed investor strategies, a higher threshold funds fewer projects but raises the ratio of good to bad quality among those funded – a "crowdblessing" or positive selection lacking in standard finance. This also reduces incentives to acquire and use private information, as do interest rate increases. Optimal design trades off the scale of investment against the level of crowdblessing. Surprisingly, profit-maximizers induce excessive information acquisition to limit investor rent. Comparative statics show that information acquisition falls with its cost, rises with its precision and falls with prior optimism. Costs reduce welfare but may raise profits by facilitating rent-extraction. |
| Keywords: | costly information, crowdfunding, P2P finance, rent extraction |
| JEL: | C72 D82 G23 L12 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1540 |
| By: | Edwards, Ryan Barclay (Australian National University); Stambolie, Estelle |
| Abstract: | Using high-frequency financial diaries data from Fijians working in Australia as part of the Pacific Australia Labour Mobility scheme, we examine whether migrants send more money home when they earn more. Regardless of whether PALM migrants earn more or less in Australia over their stay, they tend to send the same regular amounts home to support their families. Exploiting variation within individual migrants over time, we estimate an income elasticity of remittances of around 0.3. These contemporaneous responses are driven by negative shocks, suggesting an immediate pass-through to families back home, where remittances are the main source of income. |
| Date: | 2025–12–02 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:5nhq6_v1 |
| By: | Ruiz, Victoria |
| Abstract: | En un contexto de creciente complejidad de los sistemas financieros, las personas deben tomar decisiones económicas sin contar necesariamente con las competencias básicas para tomarlas de manera informada. Esto otorga a la educación financiera un papel central. El presente estudio tiene como objetivo analizar el nivel de educación financiera de estudiantes del último año de educación media de una escuela de gestión privada de la ciudad de Mar del Plata, con el propósito de identificar conocimientos, comportamientos y actitudes financieras en adolescentes y aportar evidencia empírica local sobre la temática. El estudio adquiere relevancia por su abordaje territorial y por aportar evidencia sobre un tema escasamente investigado en el ámbito escolar. Para ello, se desarrolla un estudio de caso con enfoque mixto: aportes de herramientas tanto cualitativas como cuantitativas. Se aplica una encuesta estructurada a 37 estudiantes, seguida de una intervención educativa y posteriormente se repite el relevamiento en una muestra de 30 estudiantes del mismo curso. Los resultados evidencian que inicialmente el nivel de educación financiera es bajo, especialmente en temas de interés compuesto, endeudamiento y planificación financiera, aunque se observa una mejora luego de la intervención. La investigación refuerza el rol de la escuela como espacio clave para la educación de saberes financieros y constituye un punto de partida para el diseño de programas de educación financiera en instituciones del nivel medio de la ciudad. |
| Keywords: | Educación Financiera; Adolescentes; Educación Secundaria; Estudios de Casos; |
| Date: | 2025–12–04 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4434 |
| By: | Mota, Jose |
| Abstract: | A large body of research has established the importance of international remittances as an insurance mechanism against income shocks in developing countries. However, households have additional self-insurance mechanisms, including precautionary savings, labor supply adjustments, and multiple earners. This paper develops a model with heterogeneous two-member households and endogenous international remittances to study the relationship between remittances from overseas workers and other self-insurance mechanisms. I calibrate the model with data from the Dominican Republic, and then use the model to decompose the relative importance of the self-insurance mechanisms used by non-migrant households and households with overseas workers. I find that the response of household behavior (remittances, labor supply, and savings) differs greatly depending on whether the household is a migrant or non-migrant household and on whether the shock hits the overseas worker (usually male) or the left-behind family member (usually female). Allowing for correlated wage shocks within non-migrant households further highlights the insurance benefits of migration by reducing joint exposure to local shocks and altering the composition of self-insurance mechanisms. |
| Keywords: | Remittances; self-insurance; intra-household risk sharing; labor supply |
| JEL: | D13 D14 F24 J22 |
| Date: | 2025–10–30 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126670 |