This site uses cookies, tags, and tracking settings to store information that help give you the very best browsing experience. Dismiss this warning

Narrow Your Choices

Refine By Countries

Refine By Series

Refine By Language

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Technology and Engineering > Inventions

You are looking at 1 - 10 of 23 items for

  • Type: Journal Issue x
Clear All Modify Search
Cover FinTech Notes
Institutional Arrangements for Fintech Regulation: Supervisory Monitoring
Parma Bains
and
Caroline Wu
The impact of fintech is growing rapidly worldwide, although this growth is uneven across jurisdictions. Depending on the effect of fintech, authorities may adopt a passive approach of monitoring fintech, try and capture new business models in existing regulatory frameworks, develop bespoke regulation, or adopt test and learn policies through institutional arrangements like innovation hubs and sandboxes. The test and learn approach is relatively unique to fintech in financial regulation and supervision and has advantages and disadvantages. While it can help authorities monitor and respond to the challenges of fintech in some scenarios, in others it could lead to risks to consumers and markets, particularly when designed poorly or with an unclear use case. Ultimately, the aim for authorities should be to consider fintech regulation part of the mainstream, where fintech expertise is embedded throughout an organization and not siloed to specific fintech units.
Keywords:
Fintech; sandbox; innovation; regulation; innovationhub; supervision; techsprint; IMF Library; policy sandbox; technology sprint; sector sandbox; publication order; UK Financial Conduct Authority; cross-border sandbox; Emerging technologies; Technological innovation; Global
Cover FinTech Notes
Keeping Pace with Change: Fintech and the Evolution of Commercial Law
José Garrido
,
Ms. Yan Liu
,
Joseph Sommer
, and
Juan Sebastián Viancha
This note explores the interactions between new technologies with key areas of commercial law and potential legal changes to respond to new developments in technology and businesses. Inspired by the Bali Fintech Agenda, this note argues that country authorities need to closely examine the adequacy of their legal frameworks to accommodate the use of new technologies and implement necessary legal reform so as to reap the benefits of fintech while mitigating risks. Given the cross-border nature of new technologies, international cooperation among all relevant stakeholders is critical. The note is structured as follows: Section II describes the relations between technology, business, and law, Section III discusses the nature and functions of commercial law; Section IV provides a brief overview of developments in fintech; Section V examines the interaction between technology and commercial law; and Section VI concludes with a preliminary agenda for legal reform to accommodate the use of new technologies.
Keywords:
fintech, commercial law, technological innovations, distributed ledger technology, tokens, artificial intelligence, Internet of Things, automated conrtracting, smart contracts, registries, contract law, securities and negotiable instruments, company law, secured transactions, insolvency, digital technology; FINTECH note; B. contract law; evolution of commercial law; publication order; DLT network; Blockchain and DLT; Smart contracts; Technological innovation; Emerging technologies; Securities
Cover FinTech Notes
Blockchain Consensus Mechanisms: A Primer for Supervisors
Parma Bains
Technology plays an increasingly important role in financial services. With the pace of technological inno-vation moving ever faster, the role new technology plays in the provision of financial services is becoming increasingly fundamental. New technology can generate efficiencies for firms, lowering costs that can be passed on to end users. It can increase access to financial services and products for consumers, particularly the most vulnerable; however, new technology can also create new risks and unintended consequences that can harm financial stability, consumer protection, and market integrity. This primer is designed for financial supervisors at central banks, regulatory authorities, and government departments. It adds to existing literature by summarizing key aspects of popular consensus mechanisms at a high level, with a specific focus on how such mechanisms may impact the mandates of supervisors and policymakers when deployed in financial services markets. It could also help inform IMF staff on policy development and technical assistance related to crypto assets, stablecoins, and blockchains.
Keywords:
fintech, blockchain, distributed ledger technology, proof-of-stake, proof-of-work, crypto assets, stablecoins, central bank digital currencies, Bitcoin, BigTech; Blockchain consensus mechanism; bitcoin mining; FINTECH note; A. consensus mechanism; B. consensus mechanism; Blockchain and DLT; Virtual currencies; Technological innovation; Global
Cover IMF Working Papers
For the Benefit of All: Fiscal Policies and Equity-Efficiency Trade-offs in the Age of Automation
Mr. Andrew Berg
,
Lahcen Bounader
,
Nikolay Gueorguiev
,
Hiroaki Miyamoto
,
Mr. Kenji Moriyama
,
Ryota Nakatani
, and
Luis-Felipe Zanna
Many studies predict massive job losses and real wage decline as a result of the ongoing widespread automation of production, a trend that may be further aggravated by the COVID-19 crisis. Yet automation is also expected to raise productivity and output. How can we share the gains from automation more widely, for the benefit of all? And what are the attendant equity-efficiency trade-offs? We analyze this issue by considering the effects of fiscal policies that seek to redistribute the gains from automation and address income inequality. We use a dynamic general equilibrium model with monopolistic competition, including a novel specification linking corporate power to automation. While fiscal policy cannot eliminate the classic equity-efficiency trade-offs, it can help improve them, reducing inequality at small or no loss of output. This is particularly so when policy takes advantage of novel, less distortive transmission channels of fiscal policy created by the empirically observed link between corporate market power and automation.
Keywords:
Automation; Fiscal Policy; Redistribution; Technological Change; Mark-up.; C. welfare implication; equivalent income; POLICY package; B. disposable income; D. social welfare; policy package; Robotics; Income inequality; Disposable income; Technological innovation
Cover IMF Working Papers
Technological Progress, Artificial Intelligence, and Inclusive Growth
Mr. Anton Korinek
,
Mr. Martin Schindler
, and
Joseph Stiglitz
Advances in artificial intelligence and automation have the potential to be labor-saving and to increase inequality and poverty around the globe. They also give rise to winner-takes-all dynamics that advantage highly skilled individuals and countries that are at the forefront of technological progress. We analyze the economic forces behind these developments and delineate domestic economic policies to mitigate the adverse effects while leveraging the potential gains from technological advances. We also propose reforms to the global system of governance that make the benefits of advances in artificial intelligence more inclusive.
Keywords:
C. putting AI; competition Policy; employment trend; C. intellectual property right; export-led growth; Technological innovation; Artificial intelligence; Income; Global; East Asia
Cover IMF Working Papers
Financial Intermediation and Technology: What’s Old, What’s New?
Mr. Arnoud W.A. Boot
,
Peter Hoffmann
,
Mr. Luc Laeven
, and
Mr. Lev Ratnovski
We study the effects of technological change on financial intermediation, distinguishing between innovations in information (data collection and processing) and communication (relationships and distribution). Both follow historic trends towards an increased use of hard information and less in-person interaction, which are accelerating rapidly. We point to more recent innovations, such as the combination of data abundance and artificial intelligence, and the rise of digital platforms. We argue that in particular the rise of new communication channels can lead to the vertical and horizontal disintegration of the traditional bank business model. Specialized providers of financial services can chip away activities that do not rely on access to balance sheets, while platforms can interject themselves between banks and customers. We discuss limitations to these challenges, and the resulting policy implications.
Keywords:
WP; bank; firm; customer; financial service; provider; Bigtech firm; technology firms information; financial system; monetary policy; customer interface; adverse selection; market power; Communications in revenue administration; Technological innovation; Financial statements; Credit; Europe; Financial Intermediation; Financial Innovation; Fintech; Information; Communication; natural monopoly; legacy bank
Cover IMF Working Papers
Two-Sided Market, R&D and Payments System Evolution
Ms. Grace B Li
,
James McAndrews
, and
Zhu Wang
It takes many years for more efficient electronic payments to be widely used, and the fees that merchants (consumers) pay for using those services are increasing (decreasing) over time. We address these puzzles by studying payments system evolution with a dynamic model in a twosided market setting. We calibrate the model to the U.S. payment card data, and conduct welfare and policy analysis. Our analysis shows that the market power of electronic payment networks plays important roles in explaining the slow adoption and asymmetric price changes, and the welfare impact of regulations may vary significantly through the endogenous R&D channel.
Keywords:
WP; fixed cost; payment card; R&D; Technology Adoption; Two-Sided Market; consumer welfare; card fee; cap regulation; card adoption; cash consumer; adoption cost; Currencies; Personal income; Payment systems; Credit; Technological innovation
Cover Departmental Papers
FinTech in Sub-Saharan African Countries: A Game Changer?
Mr. Amadou N Sy
,
Mr. Rodolfo Maino
,
Mr. Alexander Massara
,
Hector Perez-Saiz
, and
Preya Sharma
FinTech is a major force shaping the structure of the financial industry in sub-Saharan Africa. New technologies are being developed and implemented in sub-Saharan Africa with the potential to change the competitive landscape in the financial industry. While it raises concerns on the emergence of vulnerabilities, FinTech challenges traditional structures and creates efficiency gains by opening up the financial services value chain. Today, FinTech is emerging as a technological enabler in the region, improving financial inclusion and serving as a catalyst for the emergence of innovations in other sectors, such as agriculture and infrastructure.
Keywords:
DPPP; DP; money transfer operator; market structure; monetary policy; sub-Saharan Africa country; account penetration; agents in sub-Saharan Africa; anchors inflation; market share; money multiplier; payment system provider; technical efficiency; trade-offs FinTech; Mobile banking; Fintech; Blockchain and DLT; Sub-Saharan Africa; East Africa; Africa; Global; sub-Saharan Africa relative; FinTech in Sub-Saharan Africa; benefits of FinTech; IMF Library; efficiency gain; Technological innovation
Cover Policy Papers
A Window of Opportunity: The Managing Director's Global Policy Agenda
International Monetary Fund
The global recovery continues. Although it is not yet complete, the more favorable conjuncture offers an opportunity to tackle key policy challenges to stave off medium-term downside risks, rebuild buffers, and raise potential output. Countries should undertake well-sequenced reforms to increase productivity, improve governance, and reduce policy uncertainty and future risks. Reforms should also aim to harness the benefits of technology and economic integration and ensure that they are widely shared. Tackling challenges to the global economy continues to require cooperation and joint action across the membership. The Fund will assist members through tailored policy advice and capacity development, and stands ready to provide financial assistance to support adjustment programs.
Keywords:
PP; policy; Fund; Policy agenda; policy uncertainty; support policy
Cover Policy Papers
The Managing Director’s Global Policy Agenda: A More Inclusive and Resilient Global Economy April 2017
International Monetary Fund
The global economy is gaining momentum, but further progress hinges on policies to support the recovery, lift productivity growth, and enhance resilience. Against the background of rapid technological progress, a cooperative multilateral framework for trade and financial integration has served countries well, producing large economic benefits. However, some groups have not been able to share in these benefits, a trend exposed by a too-slow post-crisis recovery, which limited the room for all segments of society to experience income gains. Working within the multilateral framework, countries should strive for strong and more balanced growth and to provide economic opportunities for all. To this end, they should anticipate the effects of technological progress and economic integration, equip their populations with tools to reap the benefits, and put in place domestic policies to share them more broadly. The Fund will assist members through carefully tailored policy advice, lending to smooth adjustment, and capacity development.
Keywords:
PP; Fund; lending toolkit; LIC debt sustainability framework; market; commodity exporter