Mr.Yan Carriere-Swallow

Mr.Vikram Haksar

This SPR Departmental Paper will provide policymakers with a framework for studying changes to national data policy frameworks.

An Integrated Perspective

The Economics and Implications of Data

Nigel Jenkinson

Ms.Celine Rochon

Mr.Tommaso Mancini Griffoli

Tanai Khiaonarong

Mr.Dong He

Mr.Ross B Leckow

Ms.Mikari Kashima

Hervé Tourpe

A new wave of technological innovations, often called “fintech,” is accelerating change in the financial sector. What impact might fintech have on financial services, and how should regulation respond? This paper sets out an economic framework for thinking through the channels by which fintech might provide solutions that respond to consumer needs for trust, security, privacy, and better services, change the competitive landscape, and affect regulation. It combines a broad discussion of trends across financial services with a focus on cross-border payments and especially the impact of distributed ledger technology. Overall, the paper finds that boundaries among different types of service providers are blurring; barriers to entry are changing; and improvements in cross-border payments are likely. It argues that regulatory authorities need to balance carefully efficiency and stability trade-offs in the face of rapid changes, and ensure that trust is maintained in an evolving financial system. It also highlights the importance of international cooperation.

Initial Considerations

Fintech and Financial Services

Mr.Karl F Habermeier

Ms.Yasmin Almeida

Mr.Nadim Kyriakos-Saad

Ms.Hiroko Oura

Tahsin Saadi Sedik

Natalia Stetsenko

Ms.Concha Verdugo Yepes

New technologies are driving transformational changes in the global financial system. Virtual currencies (VCs) and the underlying distributed ledger systems are among these. VCs offer many potential benefits, but also considerable risks. VCs could raise efficiency and in the long run strengthen financial inclusion. At the same time, VCs could be potential vehicles for money laundering, terrorist financing, tax evasion and fraud. While risks to the conduct of monetary policy seem less likely to arise at this stage given the very small scale of VCs, risks to financial stability may eventually emerge as the new technologies become more widely used. National authorities have begun to address these challenges and will need to calibrate regulation in a manner that appropriately addresses the risks without stifling innovation. As experience is gained, international standards and best practices could be considered to provide guidance on the most appropriate regulatory responses in different fields, thereby promoting harmonization and cooperation across jurisdictions.

Virtual Currencies and Beyond

Mr.Vikram Haksar

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