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on Payment Systems and Financial Technology |
| By: | Alexander Copestake; Mr. Divya Kirti; Maria Soledad Martinez Peria; Yao Zeng |
| Abstract: | Payments technologies pose an economic dilemma: network effects can lead to a small number of dominant platforms, but efforts to increase choice can risk market fragmentation. We examine whether interoperability can help resolve this tension, using data from India’s Unified Payments Interface—the world’s largest fast payment system by volume—as well as from a major pre-existing fintech firm. When the two networks became interoperable, overall usage of digital payments rose. Consistent with a model of payment choice that we propose, this increase was driven by regions where digital payments were more fragmented across platforms ex ante. Our model implies that the unification of networks increased total usage of digital payments by more than 50% in the year after integration. |
| Keywords: | Payments; Interoperability; Networks; FinTech; UPI |
| Date: | 2025–06–27 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/126 |
| By: | Winder, Philipp (University of St.Gallen); Hildebrand, Christian (University of St. Gallen) |
| Abstract: | The rise of cryptocurrencies is transforming how consumers trade, purchase, and pay for products. The current work explores how cryptocurrencies used as a payment method shape consumer-firm interactions. Through one large-scale pilot study, four experiments, and one field experiment, we demonstrate that consumers perceive cryptocurrencies as a riskier payment method compared to traditional payment methods. We introduce the Payment Method Technology Risk Transfer and demonstrate how this heightened risk perception, induced by a payment option, subsequently increases consumers’ perceived interaction risk when engaging with the same firm. These risk dynamics negatively impact and ultimately erode consumers’ evaluation of the firm offering the payment method. We further demonstrate two essential boundary conditions: When firms actively communicate the privacy benefits of cryptocurrencies as a payment method or when the firm has a higher baseline trust with consumers, the adverse effects of cryptocurrencies as a payment method are reduced. Our findings highlight the unintended risks associated with crypto payments and the importance of effectively managing consumer risk perceptions of digital currencies when used as a means of payment for products and services. This research offers novel insights into how digital currencies and innovative payment technologies influence the psychology of consumer-firm relationships, as well as strategies that firms can employ to manage consumer expectations and mitigate risk effectively. |
| Date: | 2025–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:up6k3_v1 |
| By: | Ozili, Peterson K |
| Abstract: | The motivations and benefits of issuing a central bank digital currency (CBDC) are well known but the challenges faced by central banks in developing and issuing a CBDC have received less attention. To fill this gap, this article provides a succinct understanding of how politics hinder CBDC development. It presents the common arguments used by politicians to stifle CBDC development. It also suggests some ways to reduce political resistance towards CBDC development. |
| Keywords: | CBDC, politics, central bank digital currency, resistance. |
| JEL: | E50 E51 E52 E58 E59 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125034 |
| By: | Sommer, Christoph; Nsengumuremyi, Albert; Mader, Anna; Mußhoff, Oliver |
| Abstract: | Over the past two decades, mobile money has evolved into a broader suite of Digital Financial Solutions (DFS) that have transformed the financial landscape of SubSaharan Africa. In Kenya, over 86 per cent of adults use mobile money for everyday transactions (FinAccess Household Survey 2024), and, by 2023, over 97 per cent of loans were disbursed digitally (Creditinfo Kenya). Early evidence showed that mobile money lifted an estimated 2 per cent of Kenyans out of poverty (Suri & Jack, 2016). Yet, financial health deteriorated while DFS spread (FinAccess Household Survey 2024), which raises important questions about consumer protection. This Policy Brief outlines how inclusive DFS markets can be established to benefit all consumers without causing negative unintended consequences. The Policy Brief is built on the Kenyan example due to its pioneering role in mobile money adoption since the 2000s. Despite the high overall figures for financial inclusion through DFS in Kenya, disparities across groups persist, with women, youth, and rural communities being relatively less included. Furthermore, with only 42.1 per cent financially literate adults (basic understanding of key financial concepts), large segments of the Kenyan population remain vulnerable to the risks posed by DFS. Consequently, many users have faced adverse outcomes, including predatory lending with hidden or excessive costs; over-indebtedness; negative listing by credit bureaus; data privacy violations; and exposure to fraud and scams. In addition, systemic issues have arisen due to network effects and informational advantages, that led to high market concentration with negative effects on competition, pricing and innovations. To harness DFS for improving livelihoods, policymakers, as well as regulatory and supervisory authorities, should consider the following - based on existing evidence, especially lessons from Kenya: Use existing platforms to foster knowledge exchange on best practices with regard to DFS both within and across countries. Focus on designing tailored financial products that meet the needs of disadvantaged groups such as women, youth, and rural communities. • Ban predatory lending and aggressive debt collection practices through comprehensive licensing, regulation and supervision of all DFS providers. Importantly, the respective authorities need to have sufficient capacities to enforce such regulations. Address issues around increased defaults and negative listings through measures both on the supply side (regulations around credit information sharing) and on the demand side (financial and digital literacy campaigns). Guarantee consumers' data privacy and protection - following the principles of data minimisation, data security, and informed consent. Oblige DFS providers to install robust fraud detection and prevention mechanisms and hold DFS providers liable for the financial losses of consumers caused by providers' negligence. Level the playing field - for instance, through agent interoperability and separation of mobile money platforms from mobile network operators - to avoid concentration and ensure continued innovation and healthy competition for the benefit of the consumers. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:320463 |
| By: | Ozili, Peterson K |
| Abstract: | It is common to hear the phrase “I have a bank account, but I rarely use it”. This phrase describes what formal account inactivity means. This study explores formal account inactivity and how it is a setback for financial inclusion. This study relies on the technology acceptance model and the technology impact model, and it draws insight from the 2021 global findex dataset. It was found that formal accounts may remain inactive if adults feel that they have no need for an account, or the bank or financial institution is too far away from them, or they don't have enough money to use an account, or they don't feel comfortable using the account by themselves or they don't trust banks or financial institutions. Women, uneducated people, unemployed people, and poor people are more likely to have an inactive formal account than men, educated, employed and rich people. Asian countries (e.g. India, Nepal, Sri Lanka, Lao DPR), African countries (e.g. Ethiopia, Comoros, Morocco), and South American countries (e.g. Ecuador) have higher number of inactive formal accounts. The consequences and costs of formal account inactivity include decrease in the financial and economic empowerment of the accountholder, increased reliance on cash-based transactions, lack of awareness about new financial services and products, increased reliance on exploitative informal financial service providers, decrease in economic growth, insolvency risk for financial service providers, and lower tax revenue for the government. This study contributes to the literature that examines the consequences of financial inclusion. |
| Keywords: | inactive account, formal account, financial inclusion, digital financial inclusion, mobile money account, formal account inactivity |
| JEL: | G21 I31 I38 I39 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125031 |
| By: | Brandon Goldstein; Julapa Jagtiani; Catharine Lemieux |
| Abstract: | We explore whether banks could leverage data and technology to expand their customer base without taking on more credit risk. Previous studies have not explored the impact of fintech partnerships on the quality of banks’ loan portfolios. Our analysis utilizes data on relevant bank– fintech partnerships and loan-level data from Y-14M reports. For credit cards, we find that banks that had fintech partnerships extended larger lines of credit to consumers with low credit scores or missing credit scores. We also find that credit card default rates declined among nonprime borrowers with missing credit scores. For mortgages, unlike credit cards, our sampled banks did not grant larger mortgage loans to nonprime borrowers, however, the fintech tools seem to have improved the effectiveness of banks’ credit decisions, resulting in a decline in mortgage default rates. Further analysis of the interest rate spread residual shows that, after gaining access to fintech tools, banks were better able to differentiate between nonprime borrowers that were good credit risks and those that were not. This was evident in the pricing of the loans after the banks entered partnerships. This allowed banks with access to fintech tools to attract creditworthy nonprime borrowers by giving them (appropriately) discounted mortgage rates relative to the traditional risk pricing models. Those banks continued to charge risky nonprime borrowers a large risk premium on their mortgages. Overall, fintech partnerships have made it possible for banks to offer a larger credit card line and charge a lower mortgage interest rate to some nonprime borrowers while seeing nonprime defaults decline on average |
| Keywords: | Fintech partnership; alternative data; AI; mortgage default; mortgage rate; credit limits |
| JEL: | G21 G28 G18 L21 |
| Date: | 2025–07–14 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedpwp:101251 |
| By: | Annaki Fouad (USMBA - Université Sidi Mohamed Ben Abdellah [Fès]); Ouassou Sara (UMD [Université Mohamed 1er] [Université Mohamed Premier] - Université Mohamed Ier [Oujda, Maroc] = Mohamed I University [Oujda, Morocco] = جامعة محمد الأول (ar)); Igamane Saâdeddine (USMBA - Université Sidi Mohamed Ben Abdellah [Fès]) |
| Abstract: | Abstract This study explores the dynamics of visibility and influence in digital social relations, examining their implications for the emergence of a new symbolic capital. Using a mixed-methods design, the research combined semi-structured interviews with 20 digitally active individuals and quantitative social media data analysis to identify key predictors of digital symbolic capital. Findings reveal that visibility is influenced by content quality, network size, and engagement strategies, while influence depends on credibility, authority, and trust. The study identifies a new form of symbolic capital based on online visibility, influence, and reputation, distinct from traditional forms. The research discusses the ethical implications of these dynamics and suggests future research directions, emphasizing the need to update social theories to account for digital transformations. Keywords Digital Social Relations, Visibility, Influence, Symbolic Capital, Social Capital, Network Theory, Online Reputation |
| Abstract: | Déclaration de divulgation : L'auteur n'a pas connaissance de quelconque financement qui pourrait affecter l'objectivité de cette étude. Conflit d'intérêts : L'auteur ne signale aucun conflit d'intérêts. |
| Keywords: | Digital Social Relations, Visibility, Influence, Symbolic Capital, Social Capital, Network Theory, Online Reputation, African Scientific Journal, Digital Social Relations Visibility Influence Symbolic Capital Social Capital Network Theory Online Reputation |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05060971 |
| By: | Marco Reuter |
| Abstract: | This paper presents a novel methodology—leveraging a combination of AI and machine learning to estimate the geographic distribution of international stablecoin flows, overcoming the “anonymity” of crypto assets. Analyzing 2024 stablecoin transactions totaling $2 trillion, our findings show: (i) stablecoin flows are highest in North America ($633bn) and in Asia and Pacific ($519bn). (ii) Relative to GDP, they are most significant in Latin America and the Caribbean (7.7%), and in Africa and the Middle East (6.7%). (iii) North America exhibits net outflows of stablecoins, with evidence suggesting these flows meet global dollar demand, increasing during periods of dollar appreciation against other currencies. Further, we show that the 2023 banking crisis significantly impeded stablecoin flows originating from North America; and finally, offer a comprehensive comparison of our data to the Chainalysis dataset. |
| Keywords: | stablecoins; capital flows; capital flight; capital flow management measures (CFMs); crypto assets; currency substitution; dollar demand |
| Date: | 2025–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/141 |
| By: | Gardner, Leigh A. |
| Abstract: | A long-standing debate in Africa’s economic history is the speed with which the introduction of colonial currency changed the monetary systems in use on the continent. On the one hand, this introduction saw the gradual decline of indigenous currencies such as cowries and manilas. On the other, the persistence of such currencies suggests that a system of multiple currencies was maintained for some time after the beginning of colonial rule. This article uses new data on seasonal fluctuations in the circulation of official currencies in West Africa to argue that they were largely used for the purchase of cash crops and imports. Demand for these currencies was thus driven by their use as the medium of exchange in international trade. Such limited adoption of colonial currencies reflected both the motivations behind their introduction as well as Africans’ limited access to financial services. |
| Keywords: | colonialism; international trade; money; seasonality; West Africa |
| JEL: | F10 N17 |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128610 |
| By: | Pascal Paul; Mauricio Ulate; Jing Cynthia Wu |
| Abstract: | We develop a quantitative New Keynesian DSGE model with monopolistic banks to study the macroeconomic effects of introducing a central bank digital currency (CBDC). Households benefit from an expansion of liquidity services and higher deposit rates as bank deposit market power is curtailed, while bank profitability and lending decline. We assess this trade-off for a wide range of economies that differ in their level of interest rates. We find substantial welfare gains from introducing a CBDC with an optimal rate that can be approximated by a simple rule of thumb: the maximum between 0% and the policy rate minus 1%. |
| JEL: | E3 E4 E5 G21 G51 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33968 |
| By: | Hicham Abbad (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université, Nantes Univ - Nantes Université); Samy Souak; Sonia Mahjoub (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université, ONIRIS - École nationale vétérinaire, agroalimentaire et de l'alimentation Nantes-Atlantique, Nantes Univ - Nantes Université) |
| Abstract: | This case study examines the role of digitalization in decision-making within the automotive supply chain. It specifically focuses on the supply chain of the French groupRenault, exploring through participant observation how this manufacturer integrates three emerging technologies—IoT, blockchain, and big data—to enable decision-making in the management of parts and vehicle flows. The results show that IoT (capturing generated data), blockchain (decentralized and secure storage and sharing of collected data), and big data (data analysis) are complementary. Together, they create a digital and connected ecosystem that allows managers to make decisions both to react and adaptto disruptions and crises (resilience) and to anticipate them (proactivity). |
| Abstract: | Cette étude de cas traite du rôle de la digitalisation dans la prise de décision au sein de la supply chain automobile. Elle s'intéresse plus précisément au cas de la chaîne logistique du groupe français Renault en explorant via l'observation participante la manière avec laquelle ce constructeur articule trois technologies émergentes, IoT, blockchain et big data, pour permettre la prise de décision dans la gestion des flux de pièces et de véhicules. Les résultats montrent que l'IoT (capture des données générées), la blockchain (stockage et partage décentralisé et sécurisé des données collectées) et le big data (analyse des données) sont complémentaires et forment un écosystème digital et connecté permettant aux managers de prendre des décisions aussi bien pour réagir et s'adapter aux aléas et crises (résilience) que pour les anticiper (proactivité). |
| Keywords: | Big Data, Blockchain, IoT, Renault, Automotive supply chain |
| Date: | 2025–03–27 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05069463 |
| By: | Green, Alicia |
| Abstract: | The integration of artificial intelligence (AI) into financial intelligence systems enables automated risk detection and strategic decision support in African markets. This paper examines the technical architectures and AI methodologies (supervised learning, anomaly detection, natural language processing) employed in real-world African financial applications. We discuss data pipelines combining structured and unstructured data (market transactions, social media, news, macro indicators) and outline algorithmic models for credit risk, market risk, systemic risk, and financial crime detection. Specific cases from Nigeria, Kenya, and South Africa illustrate AI use in fraud/AML detection, credit scoring with alternative data, and portfolio stress-testing. Quantitative indicators (e.g., Nigeria’s NGN1.56 quadrillion digital payments in H1 2024 and 468\% surge in fraud cases) underscore the scale of data and risks. Regulatory contexts (e.g., CBN’s AI‑AML framework, SARB guidelines) and infrastructure constraints (limited data connectivity, power) are highlighted. The paper proposes a system framework comprising data integration, machine learning engines, continuous risk scoring, and visualization dashboards. Key applications include dynamic capital allocation, real-time AML monitoring, and scenario-based stress testing. We conclude by identifying ethical challenges (data privacy, model bias, transparency) and suggesting future directions such as hybrid AI-rule systems, localized language models, and cross-border data sharing platforms. |
| Date: | 2025–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:ynph2_v1 |
| By: | Rachid Maghniwi (Université Mohammed 5 RABAT); Mustapha Oukassi (Université Mohammed 5 RABAT) |
| Abstract: | This study examines the ethical integration of artificial intelligence (AI) in the Moroccan banking sector and itsimpact on the evolution of skills and professional roles, providing insight into the challenges and opportunities forthe African banking sector as a whole. In a context of rapid digital transformation, Morocco positions itself as aregional leader in the adoption of financial technologies, making it a relevant case study for understanding thedynamics at work across the continent. The main objective of this research is threefold: to analyze the modalitiesof ethical AI integration in Moroccan banks, to assess its impact on skills and professional roles, and to examinethe broader implications for financial inclusion and the country's economic development.The adopted methodology combines quantitative and qualitative approaches. Preliminary results indicate rapid AIadoption in the Moroccan banking sector, with a 60% increase in AI investments between 2018 and 2023. Thisadoption has led to a significant transformation of required skills, with 72% of surveyed banking professionalsreporting major changes in their roles. The study reveals the emergence of new positions such as "Banking AIEthicist" and "AI Customer Experience Manager", reflecting a growing awareness of ethical issues.In terms of financial inclusion, AI has enabled the extension of banking services to 30% new customers in ruralareas, through alternative credit scoring solutions and interfaces in Moroccan dialect. However, ethical challengespersist, particularly in terms of personal data protection and algorithmic transparency, with only 35% of the studiedbanks having established AI ethics committees. The implications of this research are manifold for Morocco andAfrica. It provides concrete recommendations for ethical and inclusive integration of AI in the banking sector, emphasizing the importance of a balanced approach between technological innovation and preservation of localcultural values |
| Keywords: | Artificial Intelligence, Moroccan Banking Sector, AI Ethics, Financial Inclusion, Skills Transformation, Professional Roles, Economic Development, Technological Innovation, Banking Regulation, Africa |
| Date: | 2025–04–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05060945 |
| By: | Rachid Maghniwi (Université Mohammed 5 RABAT); Mustapha Oukassi (Université Mohammed 5 RABAT) |
| Abstract: | This research examines the emergence and evolution of neo-banks in Morocco through an in-depth qualitative analysis based on grounded theory. In the context of digital transformation in the Moroccan banking sector, our study explores the mechanisms of adaptation of banking distribution models to local sociocultural specificities. Through a series of semi-structured interviews conducted with 45 participants representing different sector stakeholders, this research highlights the complex dynamics between technological innovation and local cultural requirements. Data analysis, performed using NVivo software, reveals the emergence of a distinctive hybrid model, characterized by a synthesis between advanced digitalization and maintenance of traditional interpersonal relationships. The results emphasize the importance of local adaptation in the success of neo-banks in Morocco, while identifying key factors of resistance and adoption. This study contributes to understanding digital transformation processes in emerging markets and proposes a conceptual framework for analyzing banking innovation in specific cultural contexts. |
| Abstract: | Cette recherche examine le phénomène de gel précoce des comptes bancaires numériques au Maroc, caractérisé par une inactivité significative dans les trois premiers mois suivant l'entrée en relation. Face aux enjeux de rentabilité et de satisfaction client que ce phénomène soulève, l'étude propose un modèle prédictif intégrant les données issues de l'open banking pour identifier et prévenir l'inactivité précoce. À travers une méthodologie mixte combinant analyse rétrospective de données transactionnelles et suivi longitudinal d'une cohorte de 150 nouveaux clients d'une banque digitale marocaine, la recherche caractérise les profils à risque et évalue la contribution marginale des données multi-bancaires dans l'amélioration des capacités prédictives. Trois approches de modélisation sont comparées : un modèle de référence utilisant uniquement les données internes de la banque, un modèle enrichi par l'open banking, et un modèle hybride avancé intégrant des techniques de deep learning. Les résultats révèlent que l'intégration des données d'open banking améliore la précision prédictive de 16, 4%, offrant aux institutions financières digitales marocaines des outils opérationnels pour renforcer l'engagement client dès les premières étapes de la relation bancaire. |
| Keywords: | Neo-banks, Morocco, Financial Innovation, Qualitative Analysis, Grounded Theory, Banking Distribution, Customer Experience, Cultural Adaptation, Digital Transformation, Financial Services, Open banking, banque digitale, gel de compte, modélisation prédictive, machine learning, Maroc, inactivité client |
| Date: | 2025–03–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05060947 |
| By: | Iñaki Aldasoro; Matteo Aquilina; Ulf Lewrick; Sang Hyuk Lim |
| Abstract: | Stablecoins' linkages with the traditional financial system are growing, which raises policy challenges ranging from preserving financial integrity to mitigating financial stability risks. Broader use of foreign currency-denominated stablecoins could raise concerns about monetary sovereignty and, in some jurisdictions, erode the effectiveness of existing foreign exchange regulations. The principle of "same risks, same regulation" faces limitations in the context of stablecoins, highlighting the need for tailored regulatory approaches that address the nature and specific features of stablecoins. |
| Date: | 2025–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:bis:bisblt:108 |
| By: | Felipe Benguria; Dennis Novy |
| Abstract: | How can a currency achieve more widespread international use? We study the internationalization of the Chinese renminbi (RMB) through the lens of a unique policy experiment in Argentina. In 2023, amid a severe dollar shortage, Argentina expanded a currency swap line with the People's Bank of China. Within the next few months, the share of imports from China invoiced in RMB surged rapidly to nearly 50% - displacing the US dollar, which had previously accounted for virtually all invoicing. Following the presidential election of late 2023, as macroeconomic policies changed and the dollar shortage eased, invoicing in RMB declined. We explore the mechanisms behind this aggregate pattern, using rich firm-level data on imports, bank-firm loan relationships, and bank balance sheets. Our results indicate that banks played a key role, in line with the dollar shortage narrative. First, firms with pre-existing relationships to banks with limited US dollar loans were more likely to switch to RMB. Second, firms borrowing from a Chinese state-owned bank were significantly more likely to use RMB. We also document firm-level spillovers, with RMB use for imports from China increasing the likelihood of RMB use for imports from other countries. Finally, we observe an effect on trade volumes. Firms switching to RMB saw increased total imports. |
| Keywords: | banking, central bank, china, geoeconomics, invoicing, lending, renminbi, swap, trade, US dollar |
| JEL: | E58 F14 F31 F33 G21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11964 |
| By: | Mawuli Kodjovi COUCHORO; Agbessi Augustin DOTO; Tchapo GBANDI; Blaise GNIMASSOUN |
| Abstract: | Bien que le mobile money soit largement adopté au sein des pays de la Communauté économique des États de l’Afrique de l’Ouest (CEDEAO), les preuves empiriques de son impact sur la performance des entreprises restent limitées. De plus, l’influence de l’écosystème d’innovation des pays dans cette dynamique est peu explorée. Cette étude examine l’effet du mobile money sur la productivité du travail des entreprises au prisme de l’écosystème d’innovation. En utilisant les données d’enquêtes de la Banque mondiale entre 2013 et 2017 pour neuf pays de la région, nous appliquons les méthodes des moindres carrés ordinaires (MCO), de l’appariement basé sur les scores de propension (PSM) et de l’ajustement de régression pondéré par les probabilités inverses (IPWRA). Nos résultats montrent que l’usage du mobile money améliore significativement la productivité du travail, particulièrement dans les pays à écosystème d’innovation relativement mature, tandis que l’effet est non significatif dans les pays à faible maturité. Ces résultats soulignent l’importance, pour les décideurs de la CEDEAO, de favoriser le développement des écosystèmes d’innovation à travers des investissements accrus en recherche et développement, le soutien à la production scientifique de qualité et la formation des chercheurs par le biais de collaborations internationales. |
| Keywords: | Mobile money, productivité du travail, écosystème d’innovation. |
| JEL: | G2 L25 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-11 |
| By: | Irigoin, Alejandra |
| Abstract: | By specifying the specie on which returns were to be repaid respondentia was a ubiquitous financial instrument to carry international trade in which silver was “essential” for its continuation. Where multiple currencies existed and silver was the preferred money, imported silver species performed as foreign currency. Thus, the import of foreign coins created issues for prices, profits and exchange rates. Eighteenth century Europeans alternatively used respondentia or bills depending on the monetary context, casting a shade of doubt on the inherent efficiency of a cashless means of payment. Until the 1820s, private bills of exchange did not circulate where cash had a premium. Europeans developed means to regulate the price of foreign coins and exchange rates. Elsewhere respondentia allowed to hedge against exchange risk and propitiated arbitrage profits, giving an advantage over bills. The article documents the global scope of the instrument; it explains the exchange nature of the contract and explores the issues that respondentia came to solve. It highlights the role of monies of account Europeans used in pricing foreign currencies in international trade. |
| Keywords: | private maritime trade finance; early modern global commerce; exchange risk; monies of account |
| JEL: | N20 F31 G23 G14 |
| Date: | 2025–04–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128607 |