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on Payment Systems and Financial Technology |
| By: | Grigoriy Korolev (New Economic School) |
| Abstract: | This paper examines the transmission of US risk-free rates to interest rates in decentralized finance (DeFi) lending market for USD-pegged stablecoins. Although DeFi protocols operate without central banks, their connection to the traditional financial system remains an open question. We use a theoretical model of DeFi lending that incorporates arbitrage between traditional and crypto markets. The model predicts that interest rate transmission depends on DeFi-specific factors, including utilization rates, crypto market conditions and the persistence of lending rates. To test these predictions, we construct a novel dataset from Ethereum blockchain data covering USDT, USDC and DAI. Our empirical results show that risk-free rate has statistically significant predictive content for stablecoin lending rates. Higher risk-free rates are correlated with higher deposit rates, and this correlation operates through the utilization channel. However, this effect is largely mediated by crypto-native factors. These findings have important implications for financial stability monitoring and for understanding the transmission of interest rates through novel digital asset markets. |
| Keywords: | Decentralized Finance, stablecoin, lending, interest rate. |
| JEL: | G15 G23 G29 |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:abo:neswpt:sp0003 |
| By: | Aurel Ruben Mäder; Christoph Meyer; Yves Nacht; Daniel Gatica-Perez |
| Abstract: | Can cash infrastructure mitigate the adverse effects of a card payment system outage? As cashless payment systems become increasingly prevalent, societies are becoming more vulnerable to technical disruptions such as card payment system outages. This paper investigates a one-day nationwide card payment system outage at a major retailer in Switzerland. To quantify the loss in card sales at the retailer's stores and the increase in cash withdrawals at ATMs, we generate granular counterfactuals by forecasting card payments and cash withdrawals at the store and ATM level. We then use residual-on-residual regressions to control for high-dimensional confounders and estimate the causal effect of outage-induced card payment losses on ATM withdrawals in an event-study framework. Our district-level results suggest that for every 100 lost card payments, there were 11 additional ATM withdrawals. In value terms, for every CHF 100 loss in card payments, ATM withdrawals increased by approximately CHF 68. We also find only limited evidence of increased card payments at competing stores during the outage or at outage-affected stores on the day after the outage. Our findings suggest that cash infrastructure can serve as a resilience buffer during card payment system outages and that consumers rely on cash as their primary fallback payment instrument. |
| Keywords: | Card payments, ATM withdrawals, Resilience, Payment system risk, Forecasting |
| JEL: | C55 D12 E42 G28 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:snb:snbwpa:2026-12 |
| By: | Ehud Shapiro |
| Abstract: | A Central Bank Digital Currency (CBDC) is central-bank money in digital form, held by the public. Leading designs have two limitations: conversion from bank deposits into CBDC can accelerate deposit flight, requiring safeguards; the CBDC stays outside credit creation and monetary-policy operations. Here we present a CBDC architecture that overcomes these limitations, based on grassroots currencies. It has three components: (1) Money: sovereign grassroots coins, which are digital debts of one unit of fiat currency issued by the central bank, constituting a direct CBDC; (2) Credit and Liquidity: non-sovereign grassroots coins, which are digital debts of one unit of the same fiat currency, redeemable at par, that can be issued by any person, natural or legal - adding credit; and (3) Interest: grassroots bonds, sovereign and non-sovereign - adding maturity, and with it interest, standard banking instruments, and the central bank's instruments of monetary policy. The central bank can therefore lend, absorb liquidity, set its rates and buy and sell securities in the coins and bonds the public holds, choosing the counterparties and terms of its credit operations, and without converting bank deposits into newly issued central bank money on demand. We prove that one unit of the fiat currency is the only arbitrage-free price of a grassroots coin whose issuer meets presentations, and argue that the central bank's lending rate and the rate on its own bonds bound what its counterparties pay and accept on comparable terms; the central bank can choose to deal with any counterparty, not just banks. |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2609.27727 |
| By: | OECD |
| Abstract: | Online platforms are a defining feature of today’s highly digital economy, reshaping how people access services, trade, and interact. Digital intermediation platforms (DIPs) – which connect buyers and sellers without taking ownership of goods or services – play a pivotal role in facilitating e-commerce and digital trade. This paper presents novel data about the diffusion of DIPs across three key consumer-facing sectors: travel and accommodation booking, ride-hailing and carpooling, and online marketplaces. Using website traffic data as a proxy for platform reach, it provides insights not only into the scale and scope of platform uptake, but also the degree of foreign presence in each sector studied. Building on these measures, the analysis considers how regulatory measures affecting digitally enabled services trade are associated with platform diffusion and foreign participation across markets with the aim of enhancing productivity, fostering innovation, and maximising the opportunities of digital trade. |
| Keywords: | Digital intermediation platforms, digital trade, e-commerce |
| Date: | 2026–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaab:386-en |
| By: | Samdub, Mila T; Kaushal, Tanushree |
| Abstract: | In the past decade, digital lending has become central to a new developmental imaginary in India. The introduction of the Digital Public Infrastructure (DPI) approach in India has been narrativized as a revolutionary feat, drawing praise from international institutions and private sector alike. The rollout of these state-promoted platforms for identification, payments, and data sharing is said to be creating new possibilities for micro-entrepreneurship and market participation, lifting the poor out of poverty. Yet in reality, digital lending’s reach among women is limited, and instead its main market is among men. In this article, we ask: why, despite the developmental claims and ambitions of DPI, does the reality of digital lending in India remain limited in reaching women? The paper compares digital lending with two earlier “financial inclusion assemblages”, public banking and microfinance to identify how each organizes credit, whom it reaches, and what kinds of social futures it imagines. It finds that the limited reach of digital lending among women reflects not a limitation of digitalisation itself, but rather a mismatch between the architecture of DPI-enabled digital lending and the needs of women and other marginalized communities. Addressing these failures, the paper concludes, requires a significant realignment of the role of DPI in relation to digital lending. Problems of reach and access are reframed as issues of structure and conditions of access. |
| Date: | 2026–09–12 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:5hqde_v1 |
| By: | Peštek, Almir; Arnaut Smajlović, Mediha; Hadžijamaković, Nadija |
| Abstract: | This paper presents findings from a three-year longitudinal study (2023-2025) on e-commerce in Bosnia and Herzegovina (BiH), conducted in collaboration with the E-Commerce Association of BiH. The research, based on annual online surveys with a cumulative sample of 4, 697 respondents, examines the evolution of online consumer behaviour, payment practices, delivery preferences, perceived risks, and trust in digital commerce. Results indicate steady growth in mobile-first purchasing and digital payment adoption, accompanied by rising consumer confidence and gradual convergence with global e-commerce trends. While domestic platforms remain relevant, their share is declining as consumers increasingly turn to regional and Asian marketplaces offering broader assortments and competitive pricing. The study also reveals that transparency, product information quality, and delivery reliability are the most decisive factors shaping online purchasing decisions, while data security concerns persist but are diminishing over time. These longitudinal insights contribute to understanding the digital transformation of emerging markets such as BiH. The findings have practical implications for retailers, policymakers, and platform developers aiming to enhance consumer trust, digital infrastructure, and competitiveness of the e-commerce ecosystem in BiH. |
| Keywords: | e-commerce, Bosnia and Herzegovina, online shopping |
| JEL: | L81 M31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esconf:343370 |
| By: | Nasir Iqbal (Pakistan Institute of Development Economics, Islamabad); Baber Majid Bhatti (Pakistan Institute of Development Economics, Islamabad) |
| Abstract: | A fully digital platform to simplify business registration in Pakistan, empowering MSMEs with mobile-first access, FBR and SECP integration, and secure online services. |
| Keywords: | business registration Pakistan, digital registration MSMEs, Pakistan startup registration, e-registration portal Pakistan, PITB limitations, FBR SECP integration, SME formalization Pakistan, online business setup, mobile-first business platform, digital business licensing |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pid:pviewp:2025:47 |
| By: | Enrique Bátiz-Zuk; Anuar Bechara; Fabrizio López-Gallo; Corrado Macchiarelli |
| Abstract: | This paper examines the effect of alternative digital lending—defined as digital credit provision by non‑bank financial intermediaries (NBFIs)—on bank and systemic risk taking and competition. The paper focuses on Sociedades Financieras Populares (SOFIPOs) which constitute a regulated and well‑documented NBFI segment allowing an empirical assessment of the relationship between digital non-bank lending expansion and bank outcomes. Using a quarterly sample of 53 Mexican banks and 8 of these non-banks for the period 2018Q1–2024Q4, we document that growth in alternative digital lending is associated with lower individual bank risk-taking and stronger competitive pressures, with the latter effect being stronger for small banks. Reflecting the moderate size of digital lenders in Mexico and the compositional reallocation between bank and non‑bank credit, overall systemic risk appears broadly unaltered by the entry of the new players. |
| Keywords: | Digital finance; alternative lending; non-bank financial intermediaries; bank risk‑taking; systemic risk; competition; financial inclusion; Mexico |
| Date: | 2026–09–18 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2026/198 |
| By: | Anna L. Paulson |
| Abstract: | Federal Reserve Bank of Philadelphia President and CEO Anna Paulson opened the Bank's 10th Annual Fintech Conference with welcome remarks, sharing her thoughts on the economic outlook and monetary policy ahead of two days of discussion among bankers, fintech leaders, regulators, academics, consumer advocates, and innovators. "Over the past 10 years, this gathering has grown into one of the field's most valuable forums, ” Paulson said. “The conference has consistently produced insights that shape how we think about fintech and the broader financial system." |
| Keywords: | Fintech |
| Date: | 2026–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedpsp:103816 |
| By: | Mahmić Muhić, Nermana; Šakić, Šeherzada |
| Abstract: | The rapid development of information and communication technologies has greatly influenced the increase in the popularity of mobile applications in all spheres of life and business. The ease of installation and use of mobile applications has contributed to their widespread use among users - they are available to users in just a few clicks. More than half of mobile application users use online reviews when searching for information and evaluating alternatives in the process of making a purchase decision. It is evident that online reviews and user evaluations have become an important source of information for modern users. The described trends motivate us to examine the role of online reviews in making a Decision to install mobile applications for purchase by users in Bosnia and Herzegovina, which is also the main goal of this paper. The research was conducted on a sample of 268 mobile application users from Bosnia and Herzegovina. It was observed whether the role of online reviews in evaluating the application and trust in the review itself shape the Decision to install mobile applications for purchase. The research findings contribute to a better understanding of user behavior in the digital environment and indicate the importance of online reviews. |
| Keywords: | online review, mobile application, consumer behavior, OLS regression |
| JEL: | M37 C4 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esconf:343416 |
| By: | Wenpin Tang |
| Abstract: | We provide an introduction to real-world asset (RWA) tokenization, and develop two economic models connecting this emerging market to classical financial theory. In search for a theory of RWA tokenization, we classify RWA tokenization according to the role of the underlying asset, distinguishing standard RWA tokenization, stablecoins, and Digital Asset Treasuries (DATs). Our first model connects tokenization with security design under asymmetric information. Continuous secondary-market trading generates information recovery, reducing adverse-selection costs over time and affecting both the issuance price and the optimal tokenization design. Our second model develops a dynamic corporate-finance framework for DATs, in which market valuation, capital-market financing, and crypto accumulation interact endogenously. We characterize the optimal issuance policy and illustrate the model using \texttt{Strategy} as a case study. A few directions for future research are discussed, providing a starting point for further theoretical and empirical study of RWA markets. |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2609.15797 |
| By: | OCDE |
| Abstract: | Le présent document se penche sur l’évolution récente de la concurrence dans le secteur des services financiers dans la région Amérique latine et Caraïbes (ALC), en s’intéressant à la montée en puissance des fintechs, à la création d’un cadre réglementaire favorisant la concurrence et au rôle de l’open banking (système bancaire ouvert). Par fintechs, ce document entend les entreprises qui ciblent la relation entre la technologie et les services financiers, des services d’arrière-guichet jusqu’aux chaînes de blocs. Ces dix dernières années, le secteur financier dans la région ALC a connu de profonds changements, parmi lesquels l’arrivée de nouveaux intervenants, l’apparition de nouveaux produits et la reconfiguration des frontières du marché. Ces évolutions ont permis de dégager des gains de compétitivité et d’offrir aux clients des services financiers de meilleure qualité, plus accessibles, personnalisés et inclusifs, qui doivent être envisagés en les mettant en balance avec les possibles risques financiers. Les progrès de la réglementation ont joué un rôle essentiel à divers stades de ce processus : ils ont parfois préparé le terrain, parfois accueilli de nouveaux modèles et technologies découlant de la transformation numérique de la finance, et, plus récemment, ont même déclenché et favorisé des innovations de rupture. Enfin, ce document établit que l’open banking est une composante majeure de ce projet favorisant la concurrence. |
| Keywords: | concurrence, fintech, open banking |
| Date: | 2024–10–03 |
| URL: | https://d.repec.org/n?u=RePEc:oec:dafaac:313-fr |
| By: | Osmanbegović, Edin; Pirić, Nedžad |
| Abstract: | This study explores the influence of digital infrastructure on household connectivity from the perspective of citizens in Bosnia and Herzegovina, responding to a notable gap in empirical research on digital inclusion at the national level. As digital technologies increasingly shape access to services and opportunities, understanding how citizens perceive public and private investment in ICT infrastructure becomes critical. Based on a representative sample of 1, 547 citizens (n = 171), the study examines how perceptions of government and telecom operator investments, alongside the perceived accessibility of digital infrastructure, impact the extent of fixed and mobile internet usage within households. The findings reveal that citizens' confidence in institutional and corporate commitment to digital infrastructure development significantly correlates with higher levels of household connectivity. This underscores the importance of not only expanding access but also improving public trust in the digital ecosystem. The study highlights disparities in perceived infrastructure availability, indicating that equitable digital access remains a persistent challenge. These insights offer actionable recommendations for policymakers and telecom providers aiming to foster inclusive digital development, particularly in underserved regions of Bosnia and Herzegovina. |
| Keywords: | digital infrastructure, internet connectivity |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esconf:343399 |
| By: | Wenli Cheng |
| Abstract: | This paper extends the classical Ricardian model from a barter system to a monetary framework, integrating the pivotal role of banking in production and exchange. It uses transaction-flow matrices to dynamically trace financial flows among all market participants and compares the systemic outcomes under three distinct monetary architectures: (1) the Euro system with a common currency; (2) the Bancor system with a supranational currency; and (3) the Dollar system with a national reserve currency. While reaffirming the Ricardian gains from comparative-advantage-based specialization, the paper reveals how different monetary systems shape trade outcomes. The Euro and the Bancor systems do not inherently generate trade imbalances. In contrast, the Dollar system imposes an asymmetric demand for the reserve currency, which must be earned through net exports. Consequently, persistent trade imbalances are an intrinsic feature of the Dollar system. |
| Keywords: | Ricardian model, the Euro system, the Bancor system, the Dollar system |
| JEL: | F10 F33 |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2620 |
| By: | Massimiliano Sala; Daniela Visetti |
| Abstract: | Many of the thousands of existing cryptocurrencies suffer from declining adoption, low liquidity and weak security, and merging two of them into a single ecosystem is a natural alternative to abandonment. No rigorous framework exists, however, for determining a fair exchange rate in such a merger. Unlike that of a corporation, the value of a cryptocurrency is driven by network effects, so the exchange rate itself influences the value of the merged asset. We extend the exchange-ratio framework of Mainini, Moretto and Visetti [7] by making the merged value endogenous: the exchange rate determines community migration, migration determines (up to user overlap) the post-merger network state, and an axiomatised valuation function assigns a value to that state. The resulting synergy has no predetermined sign, and the bounds of the bargaining region become self-referential in the exchange rate. We prove that no exchange rate at which the merger destroys value preserves wealth, and that the pre-merger price ratio preserves wealth exactly when the merger does not destroy value at that rate. In that case, under explicit threshold conditions, the price ratio satisfies all five of our fairness conditions -- wealth, adoption, security, governance and liquidity preservation -- and, under strict versions of these conditions, the admissible set contains a nondegenerate interval around it, the wealth-admissible set one of explicit width. The network-value laws proposed in the literature, from the linear law to Metcalfe's and its generalised power-law forms, share a convexity property that yields the Lipschitz control behind these estimates. Liquidity emerges as the only non-wealth condition that can disconnect the admissible set. |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2609.39264 |
| By: | OCDE |
| Abstract: | Quels sont les principaux déterminants de la concurrence dans les services de paiement mobile ? Comment les réglementations en faveur de la concurrence, les actions de sensibilisation et l’application du droit de la concurrence peuvent-elles diminuer les barrières à l’entrée et promouvoir la concurrence et l’innovation ? Ce document traite des services de paiement mobile utilisés dans les points de vente physique, pour les achats en ligne et pour les transferts d’argent entre particuliers. Il présente le paysage concurrentiel dans le domaine des paiements mobiles et examine les possibilités de concurrence qui renforcent la contestabilité, stimulent l’innovation et améliorent l’accessibilité, le coût et la qualité des paiements mobiles. Il met également en lumière les risques constants pour la concurrence qu’il convient de surveiller, notamment les asymétries des données, l’enracinement du pouvoir de marché et le contrôle d’accès aux infrastructures essentielles. Il souligne surtout l’importance de la coopération entre les autorités de la concurrence et les organismes de réglementation afin de garantir que les services de paiement mobile restent concurrentiels et continuent d’évoluer de sorte qu’ils profitent aux consommateurs et aux commerçants dans le monde entier. |
| JEL: | K21 L4 L41 L42 L43 E42 |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:oec:dafaac:324-fr |
| By: | Prashanth Bhaskara; Aadit Jerfy |
| Abstract: | This paper proposes an investment strategy through resource allocation into Kalshi Crypto Event Contracts in order to effectively hedge exposure to spot asset volatility. Using Bitcoin as a proof of concept, we treat corresponding Kalshi markets on the asset's future price as option contracts, and through construction of different portfolio allocations present a framework for which event contracts can be effectively utilized by retail investors in order to control risk framework without reducing underlying exposure to spot volatility. We showcase this information through analysis of three separate Kalshi event contracts, all relating to a different underlying market regime (i.e bullish, bearish, flat), and provide a comprehensive risk profile for each regime. Results show that a dynamic Kalshi/Bitcoin hedging strategy outperforms more simplistic portfolios across all regimes, supporting our initial hypothesis. We discuss further considerations which can erode profits in the future (i.e. fees), and provide direction for future research. |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2609.14267 |
| By: | McKenna Mulcahy |
| Abstract: | Three exhibit updates launched this summer at the St. Louis Fed's Economy Museum, which allows visitors to explore the economy and money in a fun and interactive way. |
| Date: | 2026–09–16 |
| URL: | https://d.repec.org/n?u=RePEc:fip:l00100:103788 |