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Fintech: Is This Time Different? A Framework for Assessing Risks and Opportunities for Central Banks

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  • Meyer Aaron
  • Francisco Rivadeneyra
  • Samantha Sohal

Abstract

We investigate the risks and opportunities to the mandates of central banks arising from fintech developments. Fintech may affect the different areas of responsibility of central banks—mainly monetary policy and financial stability—by changing money demand and by changing the industrial organization of the financial system. We present a competitive strategy framework to help evaluate the likelihood of these changes.

Suggested Citation

  • Meyer Aaron & Francisco Rivadeneyra & Samantha Sohal, 2017. "Fintech: Is This Time Different? A Framework for Assessing Risks and Opportunities for Central Banks," Discussion Papers 17-10, Bank of Canada.
    • Handle: RePEc:bca:bocadp:17-10
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    References listed on IDEAS

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    11. Michael Woodford, 2000. "Monetary Policy in a World Without Money," International Finance, Wiley Blackwell, vol. 3(2), pages 229-260, July.
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    Cited by:

    1. Arto Kovanen, 2019. "Competing With Bitcoin - Some Policy Considerations for Issuing Digitalized Legal Tenders," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(4), pages 1-16, July.
    2. Guillaume Bédard-Pagé, 2019. "Non-Bank Financial Intermediation in Canada: An Update," Discussion Papers 2019-2, Bank of Canada.
    3. Gaston Giordana & Paolo Guarda, 2019. "Why do social networks introduce virtual currencies?," BCL working papers 132, Central Bank of Luxembourg.
    4. Amber Wadsworth, 2018. "The pros and cons of issuing a central bank digital currency," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 81, pages 1-21, June.
    5. Francisco Zabala Aguayo & Beata Ślusarczyk, 2020. "Risks of Banking Services’ Digitalization: The Practice of Diversification and Sustainable Development Goals," Sustainability, MDPI, vol. 12(10), pages 1-10, May.
    6. Doina Caragea & Theodor Cojoianu & Mihai Dobri & Andreas Hoepner & Oana Peia & Davide Romelli, 2024. "Competition and Innovation in the Financial Sector: Evidence from the Rise of FinTech Start-ups," Journal of Financial Services Research, Springer;Western Finance Association, vol. 65(1), pages 103-140, February.
    7. Nizar, Muhammad Afdi, 2017. "Teknologi Keuangan (Fintech) : Konsep dan Implementasinya di Indonesia [Financial Technology (Fintech): It's Concept and Implementation in Indonesia]," MPRA Paper 98486, University Library of Munich, Germany.
    8. William Gaviyau & Athenia Bongani Sibindi, 2023. "Customer Due Diligence in the FinTech Era: A Bibliometric Analysis," Risks, MDPI, vol. 11(1), pages 1-17, January.
    9. Murinde, Victor & Rizopoulos, Efthymios & Zachariadis, Markos, 2022. "The impact of the FinTech revolution on the future of banking: Opportunities and risks," International Review of Financial Analysis, Elsevier, vol. 81(C).
    10. Batiz-Lazo, Bernardo & González-Correa, Ignacio, 2021. "Start-ups, Gender Disparities, and the Fintech Revolution in Latin America," MPRA Paper 109373, University Library of Munich, Germany.
    11. Stavros Pantos, 2023. "Designing Stress Tests for UK Fast-Growing Firms and Fintech," Risks, MDPI, vol. 11(2), pages 1-22, January.
    12. Péter Fáykiss & Dániel Papp & Péter Sajtos & Ágnes Tõrös, 2018. "Regulatory Tools to Encourage FinTech Innovations: The Innovation Hub and Regulatory Sandbox in International Practice," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 17(2), pages 43-67.
    13. Bank for International Settlements, 2020. "The dawn of fintech in Latin America: landscape, prospects and challenges," BIS Papers, Bank for International Settlements, number 112.

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    More about this item

    Keywords

    Central bank research; Digital Currencies; Financial Institutions; Payment clearing and settlement systems;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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