China's blockchain network has strategic implications

Significance The BSN's most immediate objective is to promote international trade by enabling smart contracts and supply chain tracing. It is often mentioned alongside other Chinese initiatives aimed at facilitating trade, most importantly the Belt and Road Initiative. Impacts The West will be suspicious of the BSN, and if it becomes widely adopted it could elicit some kind of pushback or attempts to counter it. The BSN could improve the competitiveness of Chinese manufacturers by cutting costs and improving quality and security. In conjunction with the Digital Yuan, the BSN will advance China's efforts to create a universal digital payments system.

A Study of the Impact of Crypto Currency on the Indian Payment system

Payment systems form an integral part of any emerging economy. A payment system should be safe, secure, reliable, and accessible. It will help in expanding financial inclusion and bringing financial stability. An efficient payment system helps in the smooth flow of payments and mitigation of risks and smooth functioning of the economy. It helps in fostering confidence in individuals about the use of payment services. Technological development has helped in changing the face of payments system from cards (credit/debit card) to wallets (Paytm/Phonepe etc.) to Unified Payments Interface (UPI) and Quick Response (QR)codes. It has not only introduced us to new payment methods but also strengthen the traditional payment methods. It has become an important part of our daily life. It has empowered us and made our life easier by offering services at our fingertips round the clock. The latest addition to these is cryptocurrencies like Bitcoin, Ether, Ripple, etc. Cryptocurrencies are one of the first applications of Blockchain technologies.it has removed the need for intermediaries and exert pressure on the existing framework. The attributes of cryptocurrency framework like decentralized network, no intermediaries, and the lack of stable pricing factors do not let it unlock its true potential. The future of Cryptocurrency is uncertain. Whether it will be accepted globally or still be traded via unauthorized means. Every problem allows for finding a solution. The regulators should come up with policies, which will help in shaping the payments system for the betterment of the people, by using the positive attributes of cryptocurrencies and coordinating with the Global peers.

Powering Financial Inclusion through Innovative Payment Systems

Over the past 50 years, Kenya’s payments and banking systems have undergone both incremental and revolutionary modifications that have transformed Kenya’s financial landscape, from cash transactions to digital finance ecosystems. M-PESA, rolled out in 2007, undoubtedly has earned its place in Kenya’s Hall of Fame. The developments in the payments system have culminated in a more accessible, effective and efficient Kenyan payment system. This chapter tells the M-PESA story from the lens of a regulator, from conception to the eventual launch in March 2007. More importantly, the chapter tells other understated stories of payments and related banking sector innovations that have seen the level of financial inclusion in Kenya triple from 26 per cent in 2006 to over 75 per cent in 2016. The chapter provides lessons learnt in this transformational journey, one being the need for regulators to understand the business models underpinning innovations, risks thereon, and their mitigating factors.

Digital Silk Road will strengthen Chinese power

Significance Beijing aspires to establish a China-centred digital sphere by providing partner countries with telecommunications hardware, online services, satellites and space-based services, and, potentially, an alternative crossborder payments system in the form of the ‘digital yuan’. Impacts Developing countries will become less dependent on European and US digital infrastructure. The ‘digital yuan’ could weaken US control over international financial transactions. BeiDou satellite navigation will reduce the strategic leverage Washington enjoys as a result of controlling GPS.

India’s Approach to Open Banking

We examine how the development of the digital infrastructure known as the “India Stack”—including an interoperable payments system, a universal digital ID, and other features—is delivering on the government’s objective to expand the provision of financial services. While each individual component of the India Stack is important, we argue that its key overarching feature is a foundational approach of providing extensive public infrastructures and standards that generates important synergies across the layers of the Stack. Until recently, a large share of India’s population lacked access to formal banking services and was largely reliant on cash for financial transactions. The expansion of mobile-based financial services that enable simple and convenient ways to save and conduct financial transactions has provided a novel alternative for expanding the financial net. The Stack’s improved digital infrastructures have already allowed for a rapid increase in the use of digital payments and the entry of a range of competitors including fintech and bigtech firms.