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on Payment Systems and Financial Technology |
| By: | Romain Baeriswyl |
| Abstract: | While money has evolved from natural commodities to digital tokens, the debate about the ideal money has remained the same throughout the ages. Historical controversies about the origin, nature, and double-spending of money offer valuable insights for navigating the new forms of money tokens such as cryptocurrencies, central bank digital currencies and stablecoins. |
| Keywords: | Natural law of money, State theory of money, Economic good theory of money, Credit theory of money, Double-spending of money |
| JEL: | E40 E42 E50 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:snb:snbwpa:2026-10 |
| By: | Jonathan Chiu; Furkan Danisman |
| Abstract: | We study decentralized lending on Aave V3, the largest DeFi lending protocol by total value locked. Using transaction-level data, we analyze its revenue model, borrower behavior, and liquidation dynamics. We find that protocol earnings are concentrated in a few tokens, that many users engage in recursive leverage despite overcollateralization requirements, and that liquidations occur in concentrated waves but have limited impacts on broader markets. Overall, DeFi lending with proper governance is operationally viable, but it also faces constraints related to capital efficiency, liquidation risk, and systemic fragility within the crypto ecosystem. |
| Keywords: | Money and payments; Digital assets and fintech; Payment and financial market infrastructures |
| JEL: | E50 E58 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsap:26-13 |
| By: | Megan Lang; Alpha Ly |
| Abstract: | Even as governments push to build infrastructure to achieve universal access to electricity, demand-side barriers constrain uptake where infrastructure already exists. This paper assesses the impact of the quasi-experimental introduction of mobile money on electricity adoption by households. We conduct a granular district-level analysis of 33 sub-Saharan African countries that leverages differential sub-national mobile network coverage. We find that mobile money access improves district-level power uptake by around 24% relative to similar districts without mobile money access. We provide evidence consistent with demand-side channels, specifically reduced financial frictions, driving this relationship as opposed to supply-side infrastructure expansion. Furthermore, we highlight the enabling role of mobile network coverage and the detrimental impact of mobile money taxes on electrification efforts. |
| Keywords: | mobile money, financial inclusion, electrification, demand-side factors |
| JEL: | O16 O33 Q40 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12921 |
| By: | Rakesh Arora; Umar Faruqui; Scott Hendry; Dinesh Shah; André Usche; Mark Byrne; Caroline Cook; Kevin Fraites; Wally Forsyth; Alex Caridia; Chris Meston; Teresa Venturino; Devon Read; Chadrick Buffel; Anne Boulanger; Sylvie Lacombe; Marsha Loraas |
| Abstract: | Project Samara was a limited, real world experiment designed to evaluate the use of distributed ledger technology (DLT) and wholesale central bank digital money (W CAD) in Canadian capital markets. The project involved the issuance of a single tokenized bond by Export Development Canada to a closed investor group, with RBC Capital Markets and TD Securities acting as joint lead managers. Settlement was conducted in central bank money issued by the Bank of Canada through a purpose built DLT platform integrating a securities ledger and a cash ledger to support end to end market processes. The experiment assessed whether DLT could improve efficiency, reduce settlement risk through atomic settlement, and enhance settlement finality and transaction speed. Project Samara showed that DLT based issuance and settlement of real financial instruments is technically feasible and can improve data integrity and reduce counterparty and settlement risk. These benefits were partly offset by increased system complexity, governance and liquidity costs, and new operational risks, as well as legal and regulatory frictions stemming from the need to reconcile decentralized ledger designs with existing centralized market roles. Given its narrow scope and experimental design, the findings are preliminary and illustrative, but they provide useful insights for future research and policy discussions on tokenization and DLT based financial market infrastructure. |
| Keywords: | Financial markets and funds management; Funds management; Market structure; Money and payments; Digital assets and fintech; Payment and financial market infrastructures |
| JEL: | E42 E58 G28 O33 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsap:26-8 |
| By: | Piotr Dybka; Stanisław Bartha; Maciej Łopusiński; Radoslaw Kotkowski |
| Keywords: | Mobile Payments; Synthetic Control Method; Financial Innovation; Technology Diffusion; Market Creation; Payment Sovereignty |
| JEL: | G21 O33 E42 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:cxu:wpaper:62 |
| By: | Tinn, Katrin |
| Abstract: | This paper considers introducing asymmetric privacy in the design of central bank digital currencies (CBDC) and digital currencies more generally, to preserve the privacy of money spent while keeping the benefits of digital records for money received. It is shown that this feature would help minimize real distortions between consumers, firms, and financiers, while enabling tax optimization and better access to external financing. Protecting the privacy of consumers is always desirable from an aggregate standpoint as long as there exist some privacy concerns. Implementing asymmetric privacy is technologically feasible, using for instance Zero-Knowledge proofs or other privacy tools. |
| Keywords: | Central bank digital currency design; Data privacy; Learning; Real effects of privacy preferences; Verification costs |
| JEL: | C70 D18 D83 E42 E58 G21 G23 L86 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19275 |
| By: | Sumit Agarwal; Peiyi Jin; Eswar S. Prasad; Daniel Rabetti |
| Abstract: | The 2016 Panama Papers leak tightened regulatory enforcement around money laundering and offshore banking. We investigate whether the diversion of foreign aid in developing countries led to a shift to cryptocurrency as an alternative laundering platform. We develop a disbursement-timed forensic measure of cryptocurrency activity, combining on-chain Bitcoin transactions and wallet creation, off-chain exchange records, and IP-linked web traffic, and apply it to World Bank aid disbursements covering $238 billion across the 93 recipient countries in our estimation sample during 2018-2024. Exploiting the administrative timing of aid tranche arrivals, we find sharp, short-lived surges of crypto activity at the disbursement month, driven mainly by anonymous and newly created wallets on both tax-haven and mainstream exchanges. Blockchain forensics reveal patterns consistent with the placement, layering, and integration sequence of conventional money laundering. We estimate an implied leakage of 2 to 6 cents per aid dollar, which amounts to roughly 1.7 to 4.4 billion dollars of aid diversion across the tranche arrivals we study. Capture carries no funding penalty: the four sectors where we detect it, Transport, Water and Sanitation, Social Protection, and Governance, still absorb half of subsequent World Bank funding. Cryptocurrency facilitates aid diversion, but its transparent ledgers also leave forensic traces that may help detect and recover diverted funds. |
| JEL: | G15 G18 G29 K29 K42 O16 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35655 |
| By: | Jerry Buckland; Christopher Henry; Wendy Nur; Aidan Romanow-Bear; Stephen Wild |
| Abstract: | Previous research suggests that lower-income Canadians may have unique experiences with the use of payments, including the use of cash and digital payments. We conduct a case study using data from the Canadian Financial Diaries (CFD) project to gain insight into how some lower-income Canadians pay. The CFD uses a mixed methods design for financial diaries that combines qualitative and quantitative components to understand the strengths and weaknesses of the finances of 47 Canadians with lower income. We find that diarists use their bank account to facilitate a variety of associated payments; that payment use is habitual; and that the number of monthly transactions can vary widely, both for individual diarists and between [them/diarists]. We conclude with a static analysis that suggests lower-income Canadians who make a lot of transactions during the month could pay lower monthly fees overall if they used an account package with a higher monthly fee. |
| Keywords: | Money and payments; Cash and bank notes; Retail payments |
| JEL: | D83 E41 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsap:26-6 |
| By: | Magesan, Arvind; Morales, Juan S.; Muço, Arieda |
| Abstract: | We study how legal threats to social media platforms shape online political communication. We exploit the sharp implementation of a 2020 Turkish law that required social media companies to establish local offices and provide user data to the government on request. Assembling a panel of over 700 Twitter users and 7 million posts, we use a differences-in-differences design to compare dissenters, individuals publicly critical of the reform when announced, to other groups unlikely to be affected, such as celebrities. We find that dissenters and political exiles post 15-20 percent fewer tweets following implementation, and engagement with their content falls sharply. These short-run chilling effects emerge despite limited platform compliance, indicating that anticipated enforcement risk, rather than actual enforcement, drives the effect. In the long run, the chilling effects dissipate. Our findings suggest that states can govern online speech indirectly, by regulating platforms rather than users, but that such effects may be self-limiting in the absence of visible enforcement. |
| Date: | 2026–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:j4hb8_v1 |
| By: | Pitters, Julia; Seitz, Franz |
| Abstract: | The decline of cash used for transaction purposes as well as the increase in total currency in circulation is usually discussed with respect to cost, efficiency and technological progress, i.e. digitalization. A large literature estimates the costs of cash production, distribution and handling. By contrast, the societal value of cash remains far less investigated and rarely quantified. This asymmetry matters because policy debates that monetize costs but leave benefits unconsidered may undervalue a payment instrument. The paper establishes a composite indicator capturing cash's value to society across five key dimensions: resilience, privacy, inclusion, cost control, and competition-supplemented by consumer surplus from seigniorage. We apply the methodology to Germany but the framework is designed to be replicable across countries and to support more balanced government and central-bank policy analysis. It combines a representative consumer survey, expert interviews, macro data and interdisciplinary workshops. In the base calibration, the aggregate value equals around 1.2 % of GDP. These results suggest that policy evaluations should incorporate cash's multifaceted benefits alongside costs. Recognizing cash's broader societal role can guide central banks and policymakers in fostering balanced payment ecosystems that preserve both innovation and public redundancy. |
| Keywords: | cash value, public money, payment system, inclusion, privacy, resilience |
| JEL: | D12 E41 E42 E58 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:hawdps:343057 |
| By: | Nestor Duch-Brown; Christos Genakos; Blair Yuan Lyu |
| Abstract: | We study the impact of Apple's App Tracking Transparency (ATT) policy, which requires apps to obtain explicit user permission before cross-app tracking, on the mobile gaming industry. Using SensorTower US data on the top 5, 000 games on iOS and Android (2020-2023) and a difference-in-differences design, we show that ATT increases iOS games' revenue and revenue per user, with little impact on user numbers. Gains arise from re-optimised in-app purchase menus and more major updates, not higher prices or paywalls. ATT raises concentration and reduces entry, benefiting Apple and incumbents while raising barriers to entry for new competitors. |
| Keywords: | privacy regulation, digital platforms, mobile gaming industry, App Tracking Transparency (ATT), market structure and concentration |
| Date: | 2026–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2207 |
| By: | Shaker, Reza Ardekani; Uitermark, Justus |
| Abstract: | Digital platforms have become key geospatial infrastructures through which cities are discovered, experienced, and evaluated. Whereas the extant literature has often focused on single platforms or assumed an undifferentiated platform urbanism, we know very little about how different platforms produce distinct geographies of urban visibility. To address this lacuna, we examine the spatially differentiated regimes of visibility that emerge when platforms mediate urban environments. In doing so, we distinguish between three dimensions of platforms’ geographies of digital visibility: (1) spatial inequality—how each platform distributes visibility across places; (2) spatial articulation—how platform visibilities map onto local urban geographies; and (3) spatial representation—the kinds of places and content that achieve visibility on each platform. Combining computational, geographic, and interpretive methods, we analyse how 6, 682 eating and drinking establishments in Amsterdam are represented on TikTok, Instagram, Google Maps, and Facebook, and find strikingly weak correlations between their visibility on the four platforms. We find that each platform produces distinct structures of unequal visibility, with algorithmic-discovery platforms concentrating visibility more intensely than review-based systems. Neighbourhood-level analyses further show that platform-specific spatial articulations correspond to the gentrification and touristification of specific areas. Our findings contribute to the literatures on digital geography and platform urbanism by demonstrating that digital platforms generate multiple instantiations of the same city. |
| Date: | 2026–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:v6pmr_v1 |
| By: | Ean Lay, Sam; Phon, Sophat; Som, Vuddneath; Lum, Sothearak |
| Abstract: | This study assesses whether the central Bank in Cambodia’s (NBC) cash circulation system can support its goals of expanding riel use and sustaining trust as Bakong scales. While functional, the system faces gaps in rural access, data, analytics, and public education. Comparative evidence suggests current infrastructure is insufficient for de‑dollarization at the pace NBC projects. Theoretically, the review shows that currency substitution depends on governance capacity, not macroeconomic conditions alone; extends lifecycle models to integrate digital and physical currency governance; and provides a case of CBDC deployment preceding mature cash systems. Practically, comparator cases highlight lessons in data use (U.S.), resilience (Sweden), rural access (Brazil), and counterfeit defence (South Africa). Scenario analysis indicates riel circulation could reach mid‑thirties by 2034 under current policy, or half under sustained reform. Cambodia’s position—building infrastructure deliberately rather than inheriting legacy systems—offers a unique advantage for monetary sovereignty. |
| Keywords: | Central Bank, Sovereignty, Banking System |
| JEL: | B30 B4 B40 B5 G1 G15 K0 K00 |
| Date: | 2026–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:130364 |
| By: | Gerresheim, Nils; Krahé, Max; van 't Klooster, Jens |
| Abstract: | The United States is increasingly willing to weaponise the global dependence on the dollar, raising the costs of that dependence for economies around the world. China offers the most instructive case of a major economy trying to reduce that dependence. In this report we analyse China's effort and draw lessons for Europe. Our findings: progress has differed markedly across the three use-cases of an international currency (settlement, invoicing, and investment). China made most progress on settlement, with more than half of its own trade now settled in RMB. It achieved this largely by providing efficient payment infrastructure, such as an offshore clearing-bank network, the CIPS payment system, a central bank digital currency (the e-CNY), and a broad network of central bank swap lines. Progress on invoicing and investment has been more limited, held back by the network effects that entrench the dollar and by the shallowness of RMB markets. Two lessons follow for Europe: first, providing more efficient payment infrastructure can meaningfully reduce reliance on dollar settlement. This reduces dependence where Europe is most vulnerable. Second, to reduce dollar dependency in invoicing and investment, too, a more thorough approach would be needed. |
| Keywords: | Dedollarisation, China, Geoeconomics, Europe |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dzimps:343004 |
| By: | Rajovitzky, Ariel Gustavo; Mateos, Javier Pedro |
| Abstract: | ¿Cómo está organizado Bitcoin? El objetivo del trabajo es identificar los miembros de Bitcoin, y describir las partes que componen la organización aplicando el modelo de La Organización en Cinco Partes, de Mintzberg. Primero, se identifican los miembros de Bitcoin con base en las funciones que desempeñan. Segundo, se analiza Bitcoin mediante el modelo de Mintzberg, describiendo las partes que componen su organización, los miembros que integran cada parte, y su evolución desde el inicio hasta el momento actual. Se concluye que las partes que componen la red Bitcoin tuvieron variaciones a lo largo del tiempo, y que actualmente está compuesta por: una base operativa integrada por mineros, nodos y usuarios, una tecnoestructura integrada por desarrolladores; y un staff de apoyo integrado por divulgadores, y no posee línea media ni ápice estratégico. |
| Keywords: | Bitcoin; Análisis Organizacional; |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4588 |
| By: | Pereda, Javier |
| Abstract: | It is proposed that the BCRP, within the regulatory and interpretive powers granted by its Organic Law, issue normative provisions -through a Circular- that regulates and specifies the scope of the BCRP's Organic Law on the mandatory acceptance of cash in order to reinforce the current regulatory framework, contributing to granting legal certainty to cash payments, achieving a balance between the protection of consumer rights and the functionality of the national monetary system, with the protection of the right to freedom of contract and freedom of enterprise. The proposed provisions seeks the following objectives: a) reinforce the mandatory acceptance of cash as a means of payment, b) prohibit a priori restrictions on the acceptance of cash, c) establish legitimate causes for rejection (suspicion of counterfeiting, temporary lack of change, disproportionate denomination of the banknote compared to the purchase amount), and d) reconcile consumer rights with freedom of contract and enterprise (acceptance by contract of payments other than cash, distance payments excluded from the use of cash). |
| Keywords: | Cash, payments, legal tender, consumer rights, freedom of contract, duty of suitability, Indecopi, BCRP. |
| JEL: | E42 K23 K42 |
| Date: | 2025–12–19 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:130532 |
| By: | Keiichi Kawai; Akira Matsushita |
| Abstract: | Digital investment platforms reduce search costs, yet realized investments can remain geographically concentrated. Such concentration alone cannot distinguish whether local investment reflects initial salience, proximity-related information, prior ties, or nonpecuniary motives such as support for firms in one's home prefecture. We use user-campaign records from Fundinno, Japan's dominant equity-based crowdfunding platform, which link listing exposure, campaign-page views, and investments to user residence and issuer location. For campaigns outside the Tokyo metropolitan area (non-TMA), same-prefecture users are 6.7 percentage points more likely to invest after viewing a campaign page, relative to an other-prefecture investment rate of roughly 10 percent. The corresponding adjacent-prefecture difference is only 0.9 percentage points, and the same-prefecture premium is small for campaigns inside the Tokyo metropolitan area. The premium therefore remains after observed campaign-page access, is much larger than the adjacent-prefecture difference, and is concentrated outside the metropolitan core. These findings show that online access does not make investment demand geographically neutral: for regional issuers, same-prefecture investors remain disproportionately important even after campaign-page access. The data do not identify the underlying motive, but the pattern is difficult to explain by discovery alone or by smooth proximity. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.29162 |
| By: | Carlos Burga; Jacelly Cespedes; Carlos Parra; Bernardo Ricca |
| Abstract: | While technological innovations typically increase wage inequality by favoring skilled workers, we show that instant payment systems instead reduce it. We study the labor market effects of instant payment systems in the context of Brazil's Pix rollout. Using matched employer-employee data, we implement a triple-difference design that exploits pre-Pix mobile penetration across municipalities, the differential benefits of Pix for small versus large establishments, and the timing of Pix. We find that wages in small establishments rise significantly relative to large establishments after Pix. These gains are concentrated in cash-intensive sectors such as retail and services, with no effects in wholesale or manufacturing. Crucially, wage inequality declines, driven by wage gains in the lower half of the distribution, with no effect at the top. Our evidence points to increased small-firm labor demand, consistent with lower payment frictions. These effects are amplified where low-skill labor is scarce. A calibrated monopsony model implies that uniform Pix adoption would reduce both the within- and between-municipality components of wage dispersion, amplifying the aggregate inequality reduction. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2608.13871 |
| By: | Vives, Xavier; Ye, Zhiqiang |
| Abstract: | We provide a spatial framework to study competition between banks and fintechs in the lending market and examine the impact on investment and welfare. Based on the key differences between banks and fintechs, we derive results consistent with the empirical evidence available. We find that fintechs with inferior monitoring efficiency can successfully enter because of their superior flexibility in pricing and that higher bank concentration leads to higher fintech loan volume. If fintechs and banks have similar funding costs, fintech borrowers pay lower loan rates and have higher default rates than bank borrowers with similar characteristics; however, the result will flip if fintechs have much higher funding costs than banks. The advantage of fintechs in offering convenience can also induce them to charge higher loan rates than banks. Fintech entry will improve welfare if fintechs have high monitoring efficiency and interfintech competition intensity is intermediate. Fintech entry may induce banks’ exit and reduce investment; however, it will increase investment if inter-fintech competition is intense enough. |
| JEL: | G21 G23 I31 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19245 |
| By: | Ruichao Jiang; Michelle Yeo; Long Wen |
| Abstract: | We study the blockchain censorship attack introduced in [21], which shows that joining the attack is a dominant strategy. We show that, by introducing certain detectability threshold, joining the attack can lead to strictly less reward for whales, which are defined to be a small number of validators that hold significantly more voting power than the rest (henceforth known as minnows). This leads to a change of the equilibrium: With whales unwilling to participate in the attack, it is difficult for minnows alone to launch the attack. We also perform Monte Carlo simulation to show the existence of reduction for whales' reward in Ethereum and Solana. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2608.15640 |
| By: | Frankl, Andreas; Köppl-Turyna, Monika |
| Abstract: | Introduction: While existing literature suggests that distributed ledger technologies will significantly transform capital markets, research has not yet examined how resulting changes in capital market conditions affect venture capital. Thus, this paper addresses this gap by analyzing the impact of distributed ledger technologies in capital markets on venture capital. Methods: The paper begins with an overview of the theoretical foundations of distributed ledger technologies, capital markets, and venture capital. Additionally, the paper also conducts a specific review on literature connecting these research domains. Building on that, a theoretically grounded conceptual model as described by Jaakkola (2020) is developed. Results: The conceptual model developed proposes a framework that explains the key mechanisms linking distributed ledger technology usage in capital markets to venture capital. It also identifies contradictory mechanisms, core interdependencies, and both mediating and moderating factors shaping the internal relationships between the key constructs. Discussion: While changes in capital market processes, enhanced accessibility and increased liquidity will directly influence the attractiveness for venture capital in a primarily positive way, systemic risk will indirectly influence venture capitalists and have both positive and negative effects. We also derive some propositions for further investigation and provide valuable insights as well as theoretical and practical implications for researchers, entrepreneurs and investors. Conclusion: The findings of our research are both significant and novel. The framework developed represents the first systematic interconnection between distributed ledger technologies, capital markets and venture capital, and lays the foundation for further research. |
| Abstract: | In einem Research Paper legen Monika Köppl-Turyna und Andreas Frankl erstmals ein konzeptionelles Modell vor, das systematisch untersucht, wie Distributed Ledger Technologien (DLT) - darunter Blockchain- und Tokenisierungstechnologien - Kapitalmärkte verändern und welche Auswirkungen diese Veränderungen auf Venture-Capital-Investitionen haben können. Während zahlreiche Studien den Einfluss von DLT auf Finanzmärkte oder Venture Capital jeweils getrennt analysieren, fehlte bislang ein theoretischer Rahmen, der beide Forschungsfelder miteinander verbindet. Das Research Paper schließt diese Forschungslücke und entwickelt ein konzeptionelles Modell, das die zentralen Wirkungsmechanismen zwischen DLT, Kapitalmarktstrukturen und Venture Capital systematisch beschreibt. Die Autoren identifizieren vier zentrale Wirkungsmechanismen: veränderte Kapitalmarktprozesse, systemisches Risiko, Marktzugang und Liquidität. Distributed-Ledger-Technologien können etwa Abwicklungs- und Handelsprozesse beschleunigen, Transaktionskosten senken, neue Formen der Tokenisierung ermöglichen und den Kreis potenzieller Investor:innen erweitern. Für Venture Capital ist das relevant, weil bessere Liquidität, einfacherer Kapitalmarktzugang und zusätzliche Exit-Möglichkeiten die Finanzierung und Verwertung von Beteiligungen verändern können. Das Research Paper basiert auf einer systematischen Auswertung der internationalen Fachliteratur. Ausgehend von mehr als 1.200 wissenschaftlichen Veröffentlichungen entwickelten die Autoren ein theoretisch fundiertes Modell, das als Grundlage für zukünftige empirische Forschung dienen soll. Damit leistet es einen Beitrag zur aktuellen Debatte über die Zukunft digitaler Kapitalmärkte und zeigt auf, welche Rolle technologische Innovationen künftig für Finanzierung, Unternehmertum und Wettbewerbsfähigkeit spielen könnten. |
| Keywords: | distributed ledger technologies, DLT, blockchain, tokenization, capital markets, venturecapital, digital finance, entrepreneurial finance, financial innovation, conceptual model |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ecoarp:342555 |
| By: | Taiga Saito (Hitotsubashi University); Akihiko Takahashi (Meiji University / The University of Tokyo); Shivam Gupta (Neoma Business School) |
| Abstract: | This study formulates, for the first time, the back-running mechanism in private routing for on-chain cryptocurrency trading as a leader–follower stochastic differential game between a user and a trusted searcher, providing practical implications for the mechanism design of on-chain market infrastructure. We propose a model to investigate the effect of back-running by a trusted searcher in private routing for a user in on-chain cryptocurrency transactions. The continuous-time linear–quadratic (LQ) leader–follower stochastic differential game is solved via a forward–backward stochastic differential equation (FBSDE) approach using the stochastic maximum principle. Numerical examples illustrate how allowing back-running affects the market impact of the cryptocurrency and the user’s total purchasing cost under different liquidity conditions in the on-chain market. This helps infrastructure companies design healthier markets by allowing users to choose whether to provide trade information to trusted searchers. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:cfi:fseres:cf631 |
| By: | James Chapman; Ajit Desai; Maryam Haghighi; James (Jim) C. MacGee |
| Abstract: | Rapid advances in artificial intelligence (AI)—including machine learning, natural language processing, and generative AI—are expanding the ability to extract meaningful insights from non-traditional data sources such as text, speeches, images, and real-time transactions, thereby strengthening policy analysis and operational decision-making. These tools also enable more sophisticated analytical approaches to the study of economic dynamics while creating opportunities to improve efficiency across institutional processes and operations. This paper documents the growing use of non-traditional data and AI at the Bank of Canada and their contribution to deeper insight and operational effectiveness. The experience highlights critical considerations for accelerating the responsible integration of AI into central banking functions, including evolving ways of working and career paths, fostering a robust ecosystem for innovation, and addressing emerging risks. A successful AI strategy must balance innovation with trust, transparency, security, reproducibility, sound model governance, data residency, and effective operational risk management. |
| Keywords: | Financial system; Financial stability and systemic risk; Monetary policy; Monetary policy tools and implementation; Money and payments; Payment and financial market infrastructures |
| JEL: | C45 C55 C88 L23 M15 O33 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsap:26-17 |
| By: | Besley, Tim; Burchardi, Konrad; Ghatak, Maitreesh; Xu, Linchuan |
| Abstract: | Expanding access to credit markets can be seen as a source of empowerment when it increases economic opportunities and changes who is able to start a new business. It can also have equilibrium effects on wages so that the gains from financial development are widely shared. But others see credit market expansion as an unwelcome process of `financialization' with many of the gains being appropriated by financial institutions, pointing to the concentration in ownership of financial intermediaries, especially banks, around the world. This paper explores these issues, investigating the consequences of financial sector expansion for profits, wages and entrepreneurial activity using a calibrated general equilibrium model with financial frictions, endogenous default, and wealth inequality. A key element of the model is to examine how the surplus created in the real economy by expanding financial markets is shared between borrowers, lenders, and workers employed by firms. We show that competition in banking can be an important determinant of both equity and efficiency, and hence the gains from financial inclusion. The framework also highlights the role that different types of contractual imperfections can play in determining the distribution of gains from expanding market access. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19225 |
| By: | Farmer, Roger |
| Abstract: | I introduce money into an incomplete markets model with heterogeneous agents and uninsurable income risk. I show that the model exhibits both non-monetary and monetary equilibria, with the latter existing when income risk is sufficiently high. Using numerical methods, I characterize the properties of these equilibria and analyze their stability. I find that for a range of realistic parameter values, the non-monetary equilibrium is dynamically inefficient and indeterminate, and there is a second determinate monetary equilibrium with positive valued fiat money. |
| Keywords: | Indeterminacy |
| JEL: | E30 D52 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19333 |
| By: | Donghoon Lee; Daniel Mangrum; Joelle Scally; Tejas Sinha; Wilbert Van der Klaauw |
| Abstract: | Total debt balances declined slightly by $13 billion in the second quarter of 2026, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed’s Center for Microeconomic Data. Mortgage and student loan balances saw a small decline, while there were increases across other debt products. Delinquency rates across most products remained fairly stable. Still, between 2022:Q3 and 2026:Q1, the percentage of credit card balances 90+ days delinquent rose from 7.6 percent to 12.8 percent, prompting concerns that Americans are falling behind on their debt payments at rates not seen since the Great Recession. Yet the flow delinquency rate—which captures the rate of new delinquencies—has remained relatively stable for almost two years. In this post, we use data from the New York Fed Consumer Credit Panel (CCP) to better understand the state of the consumer, and to explain the difference between our two measures of delinquency. We find that the stock delinquency rate is rising because of a pool of stale, charged-off debts that lenders have been reporting for longer durations, rather than a fundamental worsening in the incidence of delinquency. |
| Keywords: | household finance; Consumer Credit Panel (CCP); credit cards |
| JEL: | G51 |
| Date: | 2026–08–11 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:103634 |
| By: | Aldasoro, Inaki; Doerr, Sebastian; Gambacorta, Leonardo; Notra, Sukhvir; Oliviero, Tommaso; Whyte, David |
| Abstract: | Generative artificial intelligence (gen AI) introduces novel opportunities to strengthen central banks’ cyber security but also presents new risks. We use data from a unique survey among cyber security experts at major central banks to shed light on these issues. Responses reveal that most central banks have already adopted or plan to adopt gen AI tools in the context of cyber security, as perceived benefits outweigh risks. Experts foresee that AI tools will improve cyber threat detection and reduce response time to cyber attacks. Yet gen AI also increases the risks of social engineering attacks and unauthorised data disclosure. To mitigate these risks and harness the benefits of gen AI, central banks anticipate a need for substantial investments in human capital, especially in staff with expertise in both cyber security and AI programming. Finally, while respondents expect gen AI to automate various tasks, they also expect it to support human experts in other roles, such as oversight of AI models. |
| Keywords: | Artificial intelligence; Cyber security; Central banks; Human capital |
| JEL: | E58 G20 G28 K23 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:19244 |
| By: | Aditya Dutta |
| Abstract: | Production forecasting systems retrain models regularly, but a retrained candidate does not necessarily outperform a continuously maintained incumbent that has continued to learn. We introduce Shadow Before Swap (SBS), a deployment policy that warm-refits a challenger off the serving path, evaluates it against the maintained incumbent on the same next week of delayed labels, and promotes it only after a fixed paired negative-log-likelihood (NLL) advantage. In historical replay over two nonoverlapping Binance episodes spanning 48 UTC weeks, three seeds, eight underlyings, and two perpetual-futures contract types, SBS reduces NLL by 0.1472% relative to calendar replacement, 0.0755% relative to schedule-matched automatic promotion, and 0.0428% relative to continuous maintenance. The corresponding episode-stratified four-week block intervals are 0.1139%-0.1754%, 0.0521%-0.0980%, and 0.0301%-0.0554%, respectively. SBS promotes 114 of 528 challengers, reducing deployed model changes by 78.4% while improving the serving trajectory. The effect remains directionally consistent across seeds, trial budgets, promotion margins, an earlier 20-asset panel, and a topology-matched supervised objective. SBS thus provides a practical deployment policy that improves probabilistic forecasts while limiting consequential model-state transitions. |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2607.28577 |