scholarly journals Confidence in digital money: Are central banks more trusted than age is matter?

2021 ◽  
Vol 18 (1) ◽  
pp. 12-32
Author(s):  
Viktor Koziuk
Keyword(s):  
Institutional Design ◽  
Social Trust ◽  
Traditional Approach ◽  
Central Banks ◽  
Structural Features ◽  
Fiat Money ◽  
The Future ◽  
Digital Money ◽  
Monetary Order ◽  
General Regression

The virtual nature of digital money is fueling the conflict between usability, functionality and trust in the digital form. Institutional trust drivers should move forward in understanding the nature of confidence in digital money. Do central banks digital money (CBDC – central bank digital currency) and private cryptocurrencies demonstrate the same or different trust patterns? The paper used the general regression method to discover the relationship between trust in different forms of digital money and selected variables that may generate this trust. Simple empirical tests were sufficient to find the fundamental importance of age as a confidence driver relevant to CBDC and cryptocurrencies. It is found that traditional factors associated with the inflation history and quality of monetary order (central banks independence and rule of law) do not play a role in the case of CBDC, but are important in the case of cryptocurrencies. Structural features (like FinTech development or social trust) that should support trust in digital money are not found to be important. Societies with larger fraction of younger generations demonstrate higher confidence in centralized and decentralized forms of digital money. This challenges the traditional approach to money and calls into question the future role of monetary stability institutions in the digital age. Digitalization is perceived as an improvement in welfare only when fiat money institutions become fragile. The efficiency and credibility of central banks are not a bonus to confidence in CBDC. This is a challenge for the institutional design of the future digital-based monetary order.

scholarly journals DIGITAL CURRENCIES AND THEIR POTENTIAL TO DISRUPT AND REPLACE FIAT MONEY: THE CASE OF BITCOINS

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Virginia Kirigo Wachira ◽  
Esther Wanjiru Wachira
Keyword(s):  
Time Series ◽  
Quantitative Research ◽  
Price Volatility ◽  
Central Banks ◽  
Disruptive Innovation ◽  
High Price ◽  
Percentage Error ◽  
Fiat Money ◽  
The Future ◽  
Out Of Sample

This paper aims to investigate how digital currencies have caused a drastic evolution, especially in the payment sector. It aims to further studies on how bitcoin is the most conspicuous digital currency and is perceived as disruptive innovation with the potential of replacing fiat currency. The study was employed through a case study to examine whether bitcoins are disruptive innovation or a threat to the Central Banks and Fiat money. The study adopted a mixed approach research design by using qualitative and quantitative research approaches. The literature reviewed journals were published in credible journals in various databases. The Time series analysis approach was used to forecast the future prices of bitcoins. The study used an in-sample and out-of-sample time series forecasting using the Gretl software. The ARIMA (1,2,1) Model was found to be a good fit with 85% accuracy (the Mean Absolute Percentage Error -MAPE was 15%) to forecast the future of bitcoin prices. The outcome of the forecast suggested that bitcoin price will have a gradual but insignificant increase. The results of this study also suggest that bitcoins fail to fulfill the functions of money as a store of value, medium of exchange, and unit of account. This is attributed to high price volatility, lack of centralization, and exposure to hackers and fraudsters. The study further suggests that bitcoins are not disruptive innovations and do not pose any threat to the Central banks and the Fiat currency in the future. The results support that bitcoin can benefit the community as well as attracting investors as a speculative investment mainly because the bitcoins are limited in transactions. The study recommends more research on the potential impact of the Central bank's digital currencies on National and Global currencies particularly because China launched its digital Yuan recently. JEL: G21; E58; E51; 031; C10 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0790/a.php" alt="Hit counter" /></p>

EVOLUTION OF DIGITAL CURRENCIES OF CENTRAL BANKS OF THE FUTURE OR THE NEW BRETTON WOODS 2.0

2021 ◽  
Vol 3 (10) ◽  
pp. 27-35
Author(s):  
E. V. Zenkina ◽  
◽  
A. S. Kharlanov ◽  
Keyword(s):  
Central Bank ◽  
Practical Importance ◽  
Central Banks ◽  
Bretton Woods ◽  
Digital Currency ◽  
Digital World ◽  
Payment Instruments ◽  
The Future ◽  
Digital Money ◽  
The Moment

The relevance and importance of the article is due to the increasing practical importance of the evolution of the digital currencies of the central banks of the future due to the fact that globalization requires new payment instruments. We analyzed the understanding of the essence of money and its future, the reasons for the appearance, features and risks of the digital currency of the central bank. Recommendations are proposed to change the functions of national banks, in the field of the need to make digital money of central banks anonymous and facilitate payment by them. It was concluded that at present the digital currency of the central bank is a fashionable answer to the transition to the new digital world, but at the moment it is losing competition to cryptocurrencies.

scholarly journals Digital currencies: a problem of trust

2021 ◽  
Vol 2021 (2) ◽  
pp. 93-117
Author(s):  
Viktor Koziuk ◽  
Keyword(s):  
Age Structure ◽  
Financial Stability ◽  
Market Failure ◽  
Central Banks ◽  
Economic Agents ◽  
Collective Experience ◽  
Digital Money ◽  
The Stability ◽  
Monetary Order

The rising cryptocurrencies have revived discussion about the prospects of monetary order and the central bank’s role in it. Functionality is in the core of the competition between the forms of money and the payment landscape could be fractionalized affecting further decline in the efficiency of monetary policy. Central bank digital currency (CBDC) is looked by monetary authorities as a way to respond to technological challenge and fulfill the gap of the market failure related to some imperfections of privately issued digital money. The success of each money form is dependent on the trust as a collective experience. The paper raises the question if the central banks are more credible than private digital money when probable change in the age structure matters for the spread of fintech. Based on empirical analysis, it is found that economic agents differentiate digital money of central banks from those of private issuers. Private cryptocurrencies are considered more reliable when inflationary experience is stronger, while central banks’ independence level and financial stability are not factors of higher trust to CBDC. Also, a country’s institutional features do not indicate that successful central banks can use the “the umbrella” of trust to their own cryptocurrencies while the factors of technological advance fail to show a clear significance. Social capital better contributes to the trust to private digital money. At the same time, the age structure is the strong factor due to which digital currencies are more reliable in younger societies. It is concluded that in the case then trust in cryptocurrencies is not grounded on institutional factors that historically contributed to stability of the monetary order, preconditions for the latter’s higher vulnerability are likely to rise. With the growing role of age structure as a factor of higher trust to digital money, the quality of social interactions will become a very important institutional precondition for the stability of monetary order.

Some Structural Features of Metaphase Chromosomes of Mice and Men

1967 ◽  
Vol 25 ◽  
pp. 190-191
Author(s):  
Godfrey C. Hoskins ◽  
Betty B. Hoskins
Keyword(s):  
Electron Microscopy ◽  
Electron Micrographs ◽  
Structural Features ◽  
Metaphase Chromosomes ◽  
The Future ◽  
Of Mice And Men ◽  
Mouse Cells ◽  
Human And Mouse

Metaphase chromosomes from human and mouse cells in vitro are isolated by micrurgy, fixed, and placed on grids for electron microscopy. Interpretations of electron micrographs by current methods indicate the following structural features.Chromosomal spindle fibrils about 200Å thick form fascicles about 600Å thick, wrapped by dense spiraling fibrils (DSF) less than 100Å thick as they near the kinomere. Such a fascicle joins the future daughter kinomere of each metaphase chromatid with those of adjacent non-homologous chromatids to either side. Thus, four fascicles (SF, 1-4) attach to each metaphase kinomere (K). It is thought that fascicles extend from the kinomere poleward, fray out to let chromosomal fibrils act as traction fibrils against polar fibrils, then regroup to join the adjacent kinomere.

Macroprudential Policy Instruments of Central Banks

2012 ◽  
pp. 32-47
Author(s):  
S. Andryushin ◽  
V. Kuznetsova
Keyword(s):  
Systemic Risk ◽  
Financial Stability ◽  
Financial System ◽  
Policy Instruments ◽  
Central Banks ◽  
Macroprudential Policy ◽  
Policy Studies ◽  
The Future ◽  
Financial Cycles

The paper analyzes central banks macroprudencial policy and its instruments. The issues of their classification, option, design and adjustment are connected with financial stability of overall financial system and its specific institutions. The macroprudencial instruments effectiveness is evaluated from the two points: how they mitigate temporal and intersectoral systemic risk development (market, credit, and operational). The future macroprudentional policy studies directions are noted to identify the instruments, which can be used to limit the financial systemdevelopment procyclicality, mitigate the credit and financial cycles volatility.

scholarly journals From Bitcoin to Central Bank Digital Currencies: Making Sense of the Digital Money Revolution

2021 ◽  
Vol 13 (7) ◽  
pp. 165
Author(s):  
Paulo Rupino Cunha ◽  
Paulo Melo ◽  
Helder Sebastião
Keyword(s):  
Central Bank ◽  
Practical Implication ◽  
Grey Literature ◽  
Central Banks ◽  
Decision Makers ◽  
Making Sense ◽  
Extensive Search ◽  
Trade Offs ◽  
Digital Money ◽  
Open Issues

We analyze the path from cryptocurrencies to official Central Bank Digital Currencies (CBDCs), to shed some light on the ultimate dematerialization of money. To that end, we made an extensive search that resulted in a review of more than 100 academic and grey literature references, including official positions from central banks. We present and discuss the characteristics of the different CBDC variants being considered—namely, wholesale, retail, and, for the latter, the account-based, and token-based—as well as ongoing pilots, scenarios of interoperability, and open issues. Our contribution enables decision-makers and society at large to understand the potential advantages and risks of introducing CBDCs, and how these vary according to many technical and economic design choices. The practical implication is that a debate becomes possible about the trade-offs that the stakeholders are willing to accept.

scholarly journals Corporate governance in Poland

2009 ◽  
Vol 7 (2) ◽  
pp. 387-394 ◽  
Author(s):  
Tom Mortimer
Keyword(s):  
Corporate Governance ◽  
Future Development ◽  
Traditional Approach ◽  
Hybrid Approach ◽  
The State ◽  
The Future ◽  
Stakeholder Model ◽  
State Models

This article considers the traditional approach to the ’state’ Models of corporate governance, namely shareholder Model and stakeholder Model. It then considers the extent to which developments in a recent accession EU country, Poland, reflects either of these Models or adopts a hybrid approach. It then offers proposals for the future development of corporate governance within Poland.

scholarly journals Development of banking sectors in Kosovo and Montenegro in the years 2000-2010

2012 ◽  
Vol 3 (3) ◽  
pp. 79-101
Author(s):  
Katarzyna Kubiszewska
Keyword(s):  
Business Cycles ◽  
Market Economy ◽  
Financial Institutions ◽  
Central Banks ◽  
Recent History ◽  
Stages Of Development ◽  
Planned Economy ◽  
Banking Markets ◽  
Balkan Countries ◽  
The Future

The article presents main aspects of the development of banking markets in two Balkan countries – Kosovo and Montenegro. Both of them are charaterised by similar recent history, both in political and economical fields. Their financial sectors had to be built almost from scratch. The author describes the stages of development of competition in the banking sectors, using the following ratios: performace, structure, liquidity. The data is based on the information achieved from Kosovar and Montenegral central banks. Comparison of their achievements are presented on the pentagon adopted from macroeconomy stability pentagon, introduced in Poland by Institute for Market, Consumption and Business Cycles Research. The long way from centrally planned economy to market economy, in both countries, in both political and financial aspects has resulted in a successful transformation. The growing economic strength in Kosovo and Montenegro will allow their financial institutions to improve their performance and expand their activities in the future.

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