Privacy Provision, Payment Latency, and Role of Collateral
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Summary:
The new boundary between publicly and privately provided payments systems and the role of collateral may be changing. Recent technological developments have made it feasible for markets and policymakers to contemplate abolishing physical cash, and replacing it with electronic alternatives like digital tokens. This paper focuses on two concepts: (i) privacy provision that results in increased awareness of and concern with problems of privacy in payments systems; and (ii) payment latency, and how the new fintech world is likely to result in reduced counterparty and interest rate risk for corporate treasurer. The paper ties these issues from the lens of collateral, especially the analogy of collateral reuse and digital tokens.
Series:
Working Paper No. 2020/148
Subject:
Bank deposits Banking Central Bank digital currencies Collateral Currencies Financial institutions Financial markets Financial services Money Payment systems Technology
Frequency:
regular
English
Publication Date:
July 31, 2020
ISBN/ISSN:
9781513551944/1018-5941
Stock No:
WPIEA2020148
Pages:
11
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