scholarly journals A Digital Currency Architecture for Privacy and Owner-Custodianship

2021 ◽  
Vol 15 (4) ◽  
pp. 788-821
Author(s):  
G. Goodel ◽  
H. D. Al-Nakib ◽  
P. Tasca
Keyword(s):  
English Language ◽  
Banking System ◽  
Future Internet ◽  
Developed Countries ◽  
Practical Significance ◽  
Editorial Office ◽  
Fractional Reserve Banking ◽  
Point Of Sale ◽  
Digital Currency ◽  
Banking Relationships

Objective: to present the new approach to perform monetary transactions with digital currency.Methods: abstract-logical, analytical methods.Results: in recent years, electronic retail payment mechanisms, especially e-commerce and card payments at the point of sale, have increasingly replaced cash in many developed countries. As a result, societies are losing a critical public retail payment option, and retail consumers are losing important rights associated with using cash. To address this concern, we propose an approach to digital currency that would allow people without banking relationships to transact electronically and privately, including both e-commerce purchases and point-of-sale purchases that are required to be cashless.The article shows the advantages of cash payments compared to non-cash ones and defines the possibility to transform these advantages into the central bank digital currencies. The disputable issues of commercial banks development under the spread of digital currencies are discussed. The architecture of digital currencies is described, including distributed ledgers technology. It was shown that, for the digital currency to function effectively, it is necessary to include the privacy of end-users into its architecture; measures to achieve that are determined.Scientific novelty: the approached proposed in the article should be used to develop the digital currencies infrastructure. It should be government-backed, privately-operated and ensure that every transaction is registered by a bank or money services business, relying upon non-custodial wallets backed by privacy-enhancing technology, such as blind signatures or zero-knowledge proofs, to ensure that transaction counterparties are not revealed. This approach can also facilitate more efficient and transparent clearing, settlement, and management of systemic risk. We argue that our system can restore and preserve the salient features of cash, including privacy, owner-custodianship, fungibility, and accessibility, while also preserving fractional reserve banking and the existing two-tiered banking system.Practical significance: the proposed approach can be applied in the practical organization of perform monetary transactions using digital currencies.The article was first published in English language by Future Internet. For more information please contact the editorial office.For original publication: Goodell G., Al-Nakib H. D., Tasca P. A Digital Currency Architecture for Privacy and Owner-Custodianship, Future Internet, 2021, 13, 130. https://doi.org/10.3390/fi13050130Publication URL: https://www.mdpi.com/1999-5903/13/5/130

scholarly journals A Digital Currency Architecture for Privacy and Owner-Custodianship

2021 ◽  
Vol 13 (5) ◽  
pp. 130
Author(s):  
Geoffrey Goodell ◽  
Hazem Danny Al-Nakib ◽  
Paolo Tasca
Keyword(s):  
Systemic Risk ◽  
Banking System ◽  
Developed Countries ◽  
Fractional Reserve Banking ◽  
Point Of Sale ◽  
Digital Currency ◽  
Fractional Reserve ◽  
Banking Relationships ◽  
Reserve Banking ◽  
Payment Mechanisms

In recent years, electronic retail payment mechanisms, especially e-commerce and card payments at the point of sale, have increasingly replaced cash in many developed countries. As a result, societies are losing a critical public retail payment option, and retail consumers are losing important rights associated with using cash. To address this concern, we propose an approach to digital currency that would allow people without banking relationships to transact electronically and privately, including both e-commerce purchases and point-of-sale purchases that are required to be cashless. Our proposal introduces a government-backed, privately-operated digital currency infrastructure to ensure that every transaction is registered by a bank or money services business, and it relies upon non-custodial wallets backed by privacy-enhancing technology, such as blind signatures or zero-knowledge proofs, to ensure that transaction counterparties are not revealed. Our approach to digital currency can also facilitate more efficient and transparent clearing, settlement, and management of systemic risk. We argue that our system can restore and preserve the salient features of cash, including privacy, owner-custodianship, fungibility, and accessibility, while also preserving fractional reserve banking and the existing two-tiered banking system. We also show that it is possible to introduce regulation of digital currency transactions involving non-custodial wallets that unconditionally protect the privacy of end-users.

scholarly journals СТВОРЕННЯ БАНКІВСЬКИХ КЛАСТЕРІВ ДЛЯ ПІДВИЩЕННЯ ІННОВАЦІЙНОСТІ БАНКІВСЬКОЇ СИСТЕМИ УКРАЇНИ

2019 ◽  
pp. 56-65
Author(s):  
М. С. Татар ◽  
Ю. А. Нужнова ◽  
О. О. Косяк
Keyword(s):  
Cluster Analysis ◽  
Method Comparison ◽  
Banking System ◽  
Developed Countries ◽  
Comparison Method ◽  
Practical Significance ◽  
Innovation Cluster ◽  
Innovative Cluster ◽  
New Ideas ◽  
Sustainable Economic Growth

Formulation of the problem. Today most developed countries associate long-term sustainable economic growth with the transition to innovative path of development, so the problem of creating and ensuring the efficient functioning of innovative cluster structures, in particular banking, is extremely urgent. The aim of the research is systematization of theoretical and methodological provisions on the creation of banking cluster structures to enhance the innovativeness of Ukraine banking system. The subject of the research is formation and functioning of innovative banking clusters in Ukraine. The methods of the research: meaningful method, comparison method, induction and deduction methods, cluster analysis, etc. The hypothesis of the research. There is a need to create innovative banking clusters to increase the innovativeness of the Ukraine banking system. The statement of basic materials. The definitions of the term “innovation cluster” and “banking innovations” are analyzed. It is determined that banking innovations in Ukraine are aimed mainly at creating new or modernizing existing banking products and services and developing automated banking systems. The advantages of creation of innovative banking clusters are characterized and algorithm of banks cluster analysis realization and algorithm of innovative banking clusters creation are developed. The originality and practical significance of the research are algorithm of banks cluster analysis realization and algorithm of innovative banking clusters creation, which makes possible to determine the sequence of actions required for cluster structures formation. Conclusions and perspectives of further research. Prospects of creation of innovative banking clusters are characterized and algorithm of banks cluster analysis realization and algorithm of innovative banking clusters creation are developed. These algorithms will ensure close interaction between the cluster members and the generation of new ideas, will increase the innovativeness of the production and providing of banking services.

scholarly journals Researching the problems of digital economy development as an indicator of the information society: potential threats and prospects

2021 ◽  
Vol 6 (4(62)) ◽  
Author(s):  
Anna Hlazova
Keyword(s):  
Information And Communication Technologies ◽  
Information Society ◽  
Manufacturing Sector ◽  
Smart Cities ◽  
Developed Countries ◽  
Digital Economy ◽  
Remote Access ◽  
Practical Significance ◽  
Digital Currency ◽  
The Impact

The object of the paper is peculiarities of digital economy development in the framework of informatization of socio-economic, socio-cultural relations. It contributes to the in-depth development of the noosphere, the emergence of new industries and a qualitative transformation of production and distribution relations. The paper examines the impact of digitalization on transformational changes in the economy. As noted at the 14th G20 Summit, the main goals of digitalization are the development of innovations, focused on the development of society 5.0, ensuring the free flow of data and at the same time solving problems, related to information security and the protection of intellectual property rights, as well as bridging the digital gap and promoting the digitalization of micro, small and medium-sized enterprises and the development of smart cities. The research methodology is based on theoretical and methodological analysis of the literature, statistical, comparative analysis, as well as synthesis, generalization and systems analysis. The study has revealed differences between the national approach and world experience in the interpretation of digitalization. For instance, in Ukraine the phenomenon involves, first of all, «digitization» in the field of data collection and analysis. At the same time, the concept of digitalization in developed countries is considered as the modernization of the manufacturing sector based on the implementation of information and communication technologies in order to reduce the capital and material intensity of products to increase competitiveness. In addition, the level of development of central bank digital currencies (CBDC) as one of the indicators of the information society has been analyzed. As a result, it was found, that about 80 % of all central banks in the world have been working on projects to issue their own digital currency. The basic requirements for national CBDC have been systematized. The practical significance, presented in the paper, lies in making recommendations for policy implementation of national economy digitalization. It is important, first of all, to «digitize» the real manufacturing sector, but not only create all sorts of «remote access services», clearly define the government position on cryptocurrencies and continue to implement the project of e-hryvnia (digital currency of National Bank of Ukraine) introduction.

POTENTIAL OF BANK CURRENCY TRANSACTIONS WITH CRYPTOCURRENCY IN RUSSIA

2021 ◽  
Author(s):  
Юлия Борисовна Арон ◽  
Елена Валерьевна Жегалова
Keyword(s):  
Russian Federation ◽  
Banking System ◽  
Legal Regulation ◽  
Actual Problem ◽  
Digital Currency ◽  
Russian Economy ◽  
The Russian Federation ◽  
Definition Of

В статье рассматривается актуальная проблема интеграции крипто-валюты в банковскую систему РФ. Авторами предлагается определение криптовалюты, обосновывается востребованность использования цифровой валюты в экономике. Рассматривается специфика современного правового регулирования операций с криптовалютой и перспективы его развития в российской экономике. The article deals with the actual problem of integrating cryptocurrency into the banking system of the Russian Federation. The authors propose a definition of cryptocurrency, substantiate the demand for the use of digital currency in the economy. The article considers the specifics of modern legal regulation of cryptocurrency transactions and the prospects for its development in the Russian economy.

Non-banking financial intermediation and phenomena of shadow money in modern economy

2021 ◽  
Vol 27 (8) ◽  
pp. 1694-1709
Author(s):  
Vladimir K. BURLACHKOV
Keyword(s):  
Commercial Banks ◽  
Financial Intermediation ◽  
Banking System ◽  
Banking Regulation ◽  
Developed Countries ◽  
Bank Credit ◽  
Shadow Banking ◽  
Economic Agents ◽  
Shadow Banking System ◽  
Lending Activity

Subject. The article addresses the non-banking financial intermediation (shadow banking system) as it is successfully expanding nowadays both in developed countries and emerging economics. Objectives. The study aims at conducting a comprehensive analysis of the specifics of non-banking financial intermediation, revealing its impact on economic agents’ activities, causes and consequences, and elaborating the methodological framework for effectiveness of modern monetary policy. Methods. I employ methods of scientific abstraction, induction, deduction, synthesis, and comparative analysis. Results. In the modern national economy, along with the money, created by the central bank and commercial banks, there are highly liquid financial instruments called shadow money. The scope of its application is shadow banking (financial intermediation) outside the banking system. The use of shadow money is caused by high demand for credit resources. Conclusions. The high activity of shadow banking and increased turnover of shadow money resulted from a transfer to Basel standards of banking regulation in the 1990s, which affected the lending activity of commercial banks. Under these conditions, the demand for loans provided by non-bank credit and financial institutions increased. The market of non-bank credit products was formed. However, the process of lending in the shadow banking is associated with high risks and non-stability of shadow money, widely used in this sphere.

scholarly journals Unanswered quibbles: George Selgin still gets it wrong with fractional reserve free banking

2021 ◽  
Author(s):  
Philipp Bagus ◽  
David Howden
Keyword(s):  
Banking System ◽  
Real Income ◽  
Jel Classification ◽  
Free Banking ◽  
Fractional Reserve Banking ◽  
Credit Expansion ◽  
Investment Projects ◽  
Fractional Reserve ◽  
Monetary Equilibrium ◽  
El Sistema

In this article we reply to George Selgin’s counterarguments to our article «Fractional Reserve Free Banking: Some Quibbles». Selgin regards holding cash as saving while we focus on the real savings necessary to maintain investment projects. Real savings are unconsumed real income. Variations in real savings are not necessarily equal to variations in cash holdings. We show that a coordinated credit expansion in a fractional reserve free banking (FRFB) system is possible and that precautionary reserves consequently do not pose a necessary limit. We discuss various instances in which a FRFB system may expand credit without a prior increase in real savings. These facets all demonstrate why a fractional reserve banking system —even a free banking one— is inherently unstable, and incentivized to impose a stabilizing central bank. We find that at the root of our disagreements with Selgin lies a different approach to monetary theory. Selgin subscribes to the aggregative equation of exchange, which impedes him from seeing the microeconomic problems that the stabilization of «MV» by a FRFB system causes. Key words: Free banking, fractional reserve, monetary equilibrium, credit expansion, economic cycle. JEL Classification: B53, E32, E42, E5, G18, H11, K39, P3, P34. Resumen: En este artículo respondemos a George Selgin, que a su vez respondió a nuestro artículo «Fractional Reserve Free Banking: Some Quibbles». Selgin considera que los saldos de tesorería son ahorros, mientras nosotros nos fijamos en los ahorros reales necesarios para mantener proyectos de inversion. Ahorros reales son ingresos reales no consumidos. Variaciones en los ahorros reales no necesariamente coinciden con las variaciones en los saldos de tesoreria. Mostramos que una expansión crediticia coordinada es posible en un sistema bancario de reserva fraccionaria (FRFB) y que las reservas prudenciales no constituyen necesariamente un limite a la expansión co - ordinada. Discutimos varios escenarios en los que el sistema FRFB puede expandir los créditos sin un aumento previo en los ahorros reales. Todas estas facetas muestran que un sistema bancario de reservas fraccionarias —incluso uno de banca libre— es inherentemente inestable y produce incentivos para imponer un banco central estabilizador. Mostramos que el origen de nuestras diferencias con Selgin está en un enfoque diferente a la teoría monetaria. Selgin es partidario de la ecuación de intercambio que es muy agregada y que le impide ver los problemas microeconomicas que la estabilización de «MV» por parte del sistema FRFB produce. Palabras clave: Banca libre, reserva fraccionaria, equilibrio monetario, expansión crediticia, ciclo económico. Clasificación JEL: B53, E32, E42, E5, G18, H11, K39, P3, P34.

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.

scholarly journals Banking operations as an object of administrative and legal protection

2018 ◽  
Vol 81 (2) ◽  
pp. 28-37
Author(s):  
M. Y. Bukreev
Keyword(s):  
Financial Institutions ◽  
Banking Sector ◽  
Banking System ◽  
Legal Protection ◽  
Legal Regulation ◽  
Practical Significance ◽  
Legal Norms ◽  
The Past ◽  
The Subject ◽  
Banking Operations

The subject matter of the research is the relations that are formed in the process of banking operations. It has been substantiated that banks and the banking system are among the most important financial institutions, which proper and stable functioning influences on all other spheres of life in the state. It is proved by the consequences of crises in the banking sector that have occurred in Ukraine over the past few years. Awareness of the importance of this area and the possible consequences of unlawful encroachments have determined the need to search for all legal means for combating delicts in the sphere of banking operations. Understanding the fact that one can achieve significant results in the sphere of protecting banking operations by administrative and legal means, has necessitated this scientific study. In order to analyze banking operations as an object of administrative and legal protection, the author has fulfilled the following tasks. The author has highlighted the use of the concepts of “protection” and “administrative and legal protection” in the context of their implementation in relation to banking operations. The foundations of Ukrainian and international administrative and legal regulation of protecting relations in the sphere of banking operations have been revealed. The essence and features of banking operations influencing the understanding of the sphere of protected relations have been outlined; and the content of administrative and legal protection of relations in the field of banking operations has been revealed. It has been noted that there is an extensive system of banking legislation on legal norms in Ukraine regulating banking operations that require legal protection. The practical significance of the obtained results of the article is determined by the substantiated provisions for improving the approaches to increase the efficiency of the administrative and legal protection of the relations in the sphere of banking operations. A number of practical results of the research can be used while studying administrative and legal means of protecting relations in the field of banking operations.

scholarly journals The Winner Takes It All: International Inequality in Communication and Media Studies Today

2018 ◽  
Vol 96 (1) ◽  
pp. 37-59 ◽  
Author(s):  
Marton Demeter
Keyword(s):  
Developing Countries ◽  
Media Studies ◽  
English Language ◽  
Web Of Science ◽  
Developed Countries ◽  
Natural Sciences ◽  
Per Capita Gdp ◽  
International Inequality ◽  
Publication Patterns ◽  
Per Capita

In this research, we analyzed all 79 Web of Science (WoS) indexed journals in communication and media studies to disclose main publication patterns. We found that English-language countries dominate the field in a greater extent than in other disciplines, and developing countries are in a weaker position than English-language developed countries not just in natural sciences but also in soft sciences. We found significant correlations between the nominal GDP, the per capita publication, and per capita GDP of a given country and its publication scores.

Cutaneous Effects of Smoking

2004 ◽  
Vol 8 (6) ◽  
pp. 415-423 ◽  
Author(s):  
Anatoli Freiman ◽  
Garrett Bird ◽  
Andrei I. Metelitsa ◽  
Benjamin Barankin ◽  
Gilles J. Lauzon
Keyword(s):  
Cigarette Smoking ◽  
English Language ◽  
Developed Countries ◽  
Skin Lesions ◽  
Health Concern ◽  
Protective Effects ◽  
Level Of Evidence ◽  
Cutaneous Manifestations ◽  
Medline Search ◽  
Mesh Terms

Background: Cigarette smoking is the single biggest preventable cause of death and disability in developed countries and is a significant public health concern. While known to be strongly associated with a number of cardiovascular and pulmonary diseases and cancers, smoking also leads to a variety of cutaneous manifestations. Objective: This article reviews the effects of cigarette smoking on the skin and its appendages. Methods: A literature review was based on a MEDLINE search (1966–2004) for English-language articles using the MeSH terms cutaneous, dermatology, tobacco, skin, and smoking. An additional search was subsequently undertaken for articles related to smoking and associated mucocutanous diseases, with the focus on pathogenesis and epidemiologic data. Articles presenting the highest level of evidence and latest reports were preferentially selected. Results: Smoking is strongly associated with numerous dermatologic conditions including poor wound healing, wrinkling and premature skin aging, squamous cell carcinoma, psoriasis, hidradenitis suppurativa, hair loss, oral cancers, and other oral conditions. In addition, it has an impact on the skin lesions observed in diabetes, lupus, and AIDS. The evidence linking smoking and melanoma, eczema, and acne is inconclusive. Anecdotal data exist on the possible protective effects of smoking in oral/genital aphthosis of Behçet's disease, herpes labialis, pyoderma gangrenosum, acral melanoma, and Kaposi's sarcoma in AIDS patients. Conclusions: An appreciation of the adverse cutaneous consequences of smoking is important. Dermatologists can play an integral role in promoting smoking cessation by providing expert opinion and educating the public on the deleterious effects of smoking on the skin.

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