scholarly journals Cryptocurrencies: technology, initiatives of banks and central banks, and regulatory challenges

2021 ◽  
Vol 30 (2) ◽  
pp. 467-496
Author(s):  
Carlos Eduardo Carvalho ◽  
Desirée Almeida Pires ◽  
Marcel Artioli ◽  
Giuliano Contento de Oliveira
Keyword(s):  
Banking System ◽  
Central Banks ◽  
Payment Systems ◽  
Settlement Systems ◽  
Monetary System ◽  
Paper Currency ◽  
International Banks ◽  
Monetary Order ◽  
Technology Initiatives ◽  
Regulatory Challenges

Abstract This paper analyses the impacts of the innovation known as distributed ledger technology (DLT) on the monetary system and on financial activities. Private cryptocurrencies, such as Bitcoin, are permissionless means of payment, based on blockchain, a form of DLT. Evaluations suggested that these private cryptocurrencies could compete with the banks payment systems and even supplant state currency. The development of these technologies has the potential to modify profoundly monetary and financial practices, but there are no indications that they may threaten the centrality of state money and the banking system in the contemporary monetary order. Major international banks have developed cryptocurrencies for settlement systems and for interbank transactions, including the so-called stablecoins, issued by highly technological companies with on par conversion into state money. Some central banks are studying the launch of state cryptocurrencies that could coexist with their fiduciary state currency and even replace their paper currency. The use of this technology results in new challenges for regulation, including the fact that cryptocurrencies can be used for money laundering and by organized crime.

Money laundering and Greek banking payment and settlement systems

2016 ◽  
Vol 19 (1) ◽  
pp. 58-69
Author(s):  
Spyridon Repousis
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Central Banks ◽  
Target System ◽  
Business Practices ◽  
Payment Systems ◽  
Content Type ◽  
Settlement Systems ◽  
Of Greece ◽  
Securities Settlement

Purpose – The purpose of this paper is to identify, categorize and describe the Greek banking payment and settlement systems and the way to SEPA. Also, the purpose is to describe authorities that supervise money laundering through Greek payment systems and identify major categories of suspicious transaction reports and amounts of criminal assets per each category. Design/methodology/approach – The Bank of Greece, central bank of Greece, has explicit tasks in the field of payment and settlement systems. In Greece, there are three payment and settlement systems: large-value payment system (TARGET2), retail payment systems and securities settlement systems. Findings – TARGET2 is based on a technically centralized platform (single shared platform – SSP), which is provided by the central banks of Germany, France and Italy, and it replaces the decentralized structure of the original TARGET system. Migration on TARGET2 took place in Greece on May 19, 2008. Ongoing cooperation between the European System of Central Banks and the banking community through extensive consultations facilitated the smooth migration to TARGET2. Retail payment systems consist of DIAS credit transfers, direct debits, check, ATM transactions and card payments. During the year 2013, DIAS cleared 144.13 million payment transactions with a total value of €184.1 billion. Most of the transactions were credit transfers SEPA compliant. Securities settlement systems operate on the delivery versus payment principle, whereby sales of securities and respective payments are affected simultaneously, as well as the principle of dual notice. Migration of Greek data systems toward SEPA through a regulatory framework will promote the use of common European standards and business practices for a fully automated and efficient processing of payment instruments. Bank of Greece and Greek Anti-Money Laundering and Counter Terrorist Financing Authority are responsible authorities to supervise illegal activity through bank payment systems. Data show that Greek bank payment systems were used during 2012 for tax evasion and for offences that result in imprisonment for over six months. Practical implications – Above findings are useful for information technology management, legislative and compliance authorities, investors and person that operate transactions with Greek banking payment and settlement systems. Originality/value – To the best of the author’s knowledge, it is the first study about Greek banking payment systems.

Notwendigkeit, Regelungen und Konsequenzen einer neuen Geldordnung

2014 ◽  
Vol 63 (1) ◽  
Author(s):  
Timm Gudehus
Keyword(s):  
Public Debt ◽  
Substantial Reduction ◽  
Payment Systems ◽  
Negative Effects ◽  
The Public ◽  
Monetary System ◽  
Open Questions ◽  
Monetary Order ◽  
Alternative Solutions ◽  
Further Development

AbstractFrom an analysis of the uncertainties, deficiencies and negative effects of the present monetary system the necessity and the requirements for a new monetary order are derived. These requirements are fulfilled by the presented regulations of a monetary order, which is based on the proposals of Joseph Huber (Vollgeld), Henry Simons and Irving Fisher (100 %-Money), Milton Friedman (Chicago Plan) and others (Allais, 1988; Gödde, 1985; Benes / Kumhof, 2013). The new monetary order requires another cash management, adapted payment systems and a different monetary policy of the central bank. Results of the new monetary order are legally protected money, no bank runs, a substantial reduction of the public debt, self-regulated smoothing of economic and stock market cycles, stabilization of the monetary union and other advantages for the economy. By also addressing open questions and alternative solutions this paper intends to stimulate a discussion of the proposals and the further development of a new monetary order.

scholarly journals Can the ECB save the Euro zone?

2016 ◽  
Vol 11 (2) ◽  
pp. 81-94 ◽  
Author(s):  
Alvaro Cencini
Keyword(s):  
Central Banks ◽  
High Time ◽  
Payment Systems ◽  
Single Currency ◽  
European Currency ◽  
Euro Zone ◽  
Cross Border ◽  
Monetary Unification ◽  
Monetary System ◽  
True System

The European project of monetary unification is under threat as never before. It is, therefore, high time to point out what went wrong and what should be done to reform the Eurosystem accordingly. This paper shows that Euro zone member countries are de facto still lacking a single currency and a monetary system that would allow for the final payment of cross-border transactions. Starting from the RTGS mechanism adopted by the Eurosystem and from a comparison with the working of domestic payment systems, it describes the changes required to transform the ECB into a bank of central banks capable to guarantee the existence of a true system of intra-European payments, with or without a single European currency (that is, with or without the loss of Euro zone countries’ monetary sovereignty)

Money Supply: Theory and Organization

2005 ◽  
pp. 48-60
Author(s):  
V. Burlachkov
Keyword(s):  
Interest Rate ◽  
Banking System ◽  
Central Banks ◽  
Open Market ◽  
Economic Rent ◽  
Payment Systems ◽  
Exchange Rate Dynamics ◽  
Money Multiplier ◽  
The World ◽  
The Difference

The effect of money multiplier is determined by credit activities of the banking system and depends upon the value of the difference between average profitability in the economy and interest rate. The modification of payment systems may lead to decreasing central banks possibilities of money regulation. Seigniorage which is obtained by the banking system is a kind of economic rent. The effect of money multiplier reveals itself in the world credit market and influences exchange rate dynamics of reserve currencies. Using government securities as the main asset of central banks and as an instrument of open market operations leads to appreciation of interest rate and to decreasing of credit activities in the economy. A perspective instrument of money regulation is allocation of central banks deposits with commercial banks.

Problems and prospects for the Russian banking supervision development in modern conditions

2020 ◽  
Vol 26 (6) ◽  
pp. 1283-1296
Author(s):  
K.A. Omarieva ◽  
P.G. Isaeva
Keyword(s):  
Banking System ◽  
Main Role ◽  
Banking Supervision ◽  
Monetary System ◽  
The Russian Federation ◽  
Document Flow ◽  
Development Methods ◽  
Further Development ◽  
Development Prospects

Subject. The article addresses problems and prospects for the banking supervision development in the Russian Federation under modern conditions. Objectives. We review the essence and methods of organization of the banking supervision, and identify the main problems and prospects for its development. Methods. To provide valid, reliable and reasoned recommendations, we apply normative and integrated approaches to the study of the banking supervision effectiveness in the current circumstances. Results. The paper investigates main problems and development prospects for the Russian banking supervision. The essential importance of supervision comes from the main role of the banking system in maintaining accounts of economic entities and making settlements. Even minor failures or delays in operations can lead to negative outcomes and disastrous consequences for the entire monetary system and the national economy. Therefore, we highlight issues that require attention, and make proposals for further development of the banking supervision. Conclusions. In the context of dynamically developing economy, the banking practice is becoming more complex. As a result, there is a need for new financial instruments that can reduce risks, increase the speed and efficiency of operations and document flow, and help achieve the world levels of introduced standards.

ANALYSIS OF THE SCO NATIONAL PAYMENT SYSTEMS AND PROPOSALS FOR OPTIMIZATION OF THE SETTLEMENTS IN SCO

2020 ◽  
Vol 2 (6) ◽  
pp. 147-158
Author(s):  
L. N. KRASAVINA ◽  
◽  
L. I. KHOMYAKOVA ◽  
Keyword(s):  
External Factor ◽  
Digital Technologies ◽  
Central Banks ◽  
Payment System ◽  
Payment Systems ◽  
Shanghai Cooperation Organization ◽  
Regional Features

The article discusses the features of the functioning of national payment systems of the countries of the Shanghai Cooperation Organization (SCO). The specifics of the payment systems of the SCO countries are revealed, the emphasis is placed on their regional features. The role of central banks in ensuring the stable and safe functioning of national payment systems is highlighted. The importance of the supervisory function of central banks in order to control the payment system operators of the SCO countries is emphasized. Forecasts of the development of remote and digital technologies in the payment sector are given taking into account the influence of a new external factor (pandemic).

IMPROVING THE EFFICIENCY OF USING INFORMATION AND COMMUNICATION TECHNOLOGIES IN THE BANKING SYSTEM

2021 ◽  
Vol 4 (4) ◽  
pp. 41-46
Author(s):  
Ra’no Parpieva ◽  
◽  
Nafisa Norboyeva ◽  
Adiba Turayeva
Keyword(s):  
Information And Communication Technologies ◽  
Information Technologies ◽  
Banking Sector ◽  
Banking System ◽  
Modern Society ◽  
Communication Technologies ◽  
Payment Systems ◽  
Information And Communication ◽  
Effective Use ◽  
The Impact

This article will serve to select the system required for the effective use of information and communication technologies in the banking system and the impact of national payment systems in the banking sector on modern society, the effective use of new modern information technologies in the system.Study of foreign experience to select information and communication technologies that should be used in modern banks with information and communication technologies in the banking system, which have been used before.

scholarly journals TREASURY BILLS AND/OR CENTRAL BANK BILLS FOR ABSORBING SURPLUS LIQUIDITY: THE MAIN CONSIDERATIONS

2013 ◽  
Vol 04 (02) ◽  
pp. 1350011
Author(s):  
OBERT NYAWATA
Keyword(s):  
Central Bank ◽  
Banking System ◽  
Central Banks ◽  
Market Development ◽  
Practical Reasons ◽  
Treasury Bills ◽  
Positive Externalities ◽  
Excess Liquidity ◽  
Challenging Question ◽  
Transmission Of Monetary Policy

This paper discusses the challenging question of whether central banks should use Treasury bills or central bank bills for draining excess liquidity in the banking system. While recognizing that there are practical reasons for using central bank bills, the paper argues that Treasury bills are the first best option especially because of the positive externalities for the financial sector and the rest of the economy. However, the main considerations in the choice should be: (i) operational independence for the central bank; (ii) market development; and (iii) the strengthening of the transmission of monetary policy impulses.

scholarly journals CENTRAL BANK DIGITAL CURRENCY: ECONOMIC AND LEGAL CHARACTERISTICS

2019 ◽  
pp. 94-100
Author(s):  
T.S. Hudima ◽  
V.A. Ustymenko
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Financial Stability ◽  
Banking System ◽  
Legal Framework ◽  
Central Banks ◽  
Digital Currency ◽  
Business Entities ◽  
The Right ◽  
Article 5

The article is devoted to identifying the peculiarities of the central bank digital currency (CBDC), explaining their impact on the monetary policy of the state, and identifying the prospects for the transformation of domestic banking legislation in connection with the implementation of the CBDC. It is noted that the scope of competence of the Central Bank and the legal basis for the issuance of the CBDC will depend on the economic and legal features of the digital currency, the degree of its impact on the monetary policy, the financial stability of the country’s economy and so on. In the process of forming the appropriate legal field and defining the conceptual apparatus in the sphere of emission and circulation of the CBDC, the peculiarities of the use of the latter in economic transactions and the specific functions not inherent in ordinary means of payment should be taken. СBDC initiatives will help: 1) progressively narrow the banking system at the level of the Central Banks (such as the Chicago Plan) by allowing individuals and businesses to deposit directly into the accounts of the Central Banks; 2) increasing confidence of economic entities and individuals in the financial system; 3) strengthening the financial stability of the economy (both domestically and globally). Granting business entities or individuals the right to store digital money directly with the Central Bank can give rise to two main directions of influence on monetary policy: first, to strengthen its transmission mechanism; secondly, lead to banks being disrupted. This may lead to some legal issues regarding (1) the NBU’s area of competence; (2) the constitutional foundations of the legal economic order (Article 5 of the ECU). In particular, it cannot be ruled out that centralization of the production, servicing, and management of the СBDC turnover may violate the principles of competition in business activities, prevent abuse of monopoly position in the market, etc. Keywords: monetary policy, central bank digital currency, financial stability, competence, legal framework, economic operations, issue.

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