Archive for June 27th, 2019

Swiss central bank asked to issue digital currency for its stock exchange..

June 27, 2019

News from Swiss land:

The Swiss stock exchange wants the country’s central bank to issue a form of cryptocurrency to settle payments on its new digital securities trading platform. If the Swiss National Bank (SNB) agrees, it would represent a departure from its cautious policy on digital currencies.

Stock exchange operator SIX Group revealed at the Crypto Valley Association conferenceexternal link that traders on its forthcoming SDX platform would be able to swap cash for a new digital token. This token would be used to pay for securities bought on the exchange and could be redeemed for cash when required. Digital tokens backed by conventional currencies are known as stablecoins because the peg reduces price volatility.

SIX, which is owned by a consortium of member banks, restricts access to its trading platforms to professional “qualified” investors. Its SDX platform, that will trade digital-only versions of stocks, bonds and other securities, is due to be unveiled early next year.

“SDX member banks will be able to settle their trades and other obligations against tokenised CHF within SDX once we are up and running. To facilitate this, SDX would accept CHF payments from member banks in central bank money and issue equivalent tokenised CHF in SDX. The value of tokenised CHF would be pegged 1:1 with CHF at all times. We most definitely favour a central bank issued stablecoin,” SIX said in an emailed statement.

An SNB representative confirmed to swissinfo that the central bank is holding talks with SIX “about different options on how to settle the cash side” of trades. But no final decision has been made.

Hmm..

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The Shifting Wealth of Nations: How Argentina fares worst amidst all countries…

June 27, 2019

Prof Tim Taylor on his blog points to this interesting research by Micheal Cembalest of JP Morgan.

Cembalist looks at socialism across world and find Nordic nations are hardly socialistic.

(more…)

Indian public refusing certain coins as legal tender: Demonetisation fears keep lurking..

June 27, 2019

I recently learnt that people are not accepting certain coins of Rs 10 denominations.

RBI released yet another circular saying all coins are legal tender (see previous appeals as well):

(more…)

Central banks vs populists tweet storm: ignore or fight

June 27, 2019

National Bank of Ukraine and Bank of Poland organised  their Annual Research Conference (HT: CentralBanking.com).

There was a panel discussion on  Central banks vs populists: ignore or fight. The panelists were:

Moderator:
Olga Stankova, International Monetary Fund
Speakers:
Emma Murphy, Bank of England
Yuriy Gorodnichenko, University of California, Berkeley
Dmytro Sologub, National Bank of Ukraine
Miroslav Singer, Generali CEE Holding
The video of the panel is on youtube.
Miroslav Singer, former Governor of Czech Central Bank says he would rather fight and ignore 🙂 Prof Yuriy Gorodnichenko of University of California Berkeley says fight between the two has been there for a long time.
The last question asked to panelists was how to fight a tweetstorm by say Trump? All said you cannot fight the storm as President has many more followers. One can atmost clarify facts and not take it personally.
Lots of other interesting questions.

Mint newspaper is hiring..

June 27, 2019

Mint’s data journalism team is hiring. Last date is 10 July 2019. Spread the word.

Financial Gerontology: An emerging new sub-field in finance..

June 27, 2019

Haruhiko Kuroda, Governor, Bank of Japan in this speech talks about Financial inclusion in aging society:

As we get older, we all become physically weaker. Declining mobility means we can no longer take it for granted that we can easily visit bank branches. Deteriorating eyesight and hearing ability may impair our capacity to fill out a form or understand a face-to-face explanation. Declining cognitive ability may create difficulty in making financial decisions. Moreover, there is the risk that senior citizens will become victims of financial crime. In 2018, among all recorded cases of so-called special fraud in Japan — such as telephone-based identity deception — 78 percent of the victims were aged 65 and over.

Financial inclusion is therefore an extremely important social agenda in an aging society, as it ensures that senior citizens — who may have difficulty in visiting banks or making financial transactions due to age-related decline — can continue to use financial services with confidence and benefit as much as possible from these services.

In the field of what is known as “financial gerontology,” there has been discussion about ways to make the adult guardianship system more effective in order to protect the rights of senior citizens with cognitive decline. The use of innovative digital technologies has also been considered. For example, using biometric technology for identity verification and mobile payments will enable senior citizens to have secured access to financial services without actually visiting bank premises. Moreover, the use of speech recognition technology will enable financial transactions to be made without the need for physical writing or keyboard skills. Advances in technology may create increasingly comprehensive financial services that are better tailored to the needs of the individual senior citizen.

These new financial services for senior citizens can also be a great business opportunity for financial institutions. On the other hand, as technology advances, the risk of technology abuse will increase, and vigilance is therefore essential to maintain security.

Hmm..

Though, in India we hear the opposite. How these technologies have made it difficult for aged people to access their own deposited money.

As societies age across the world, financial gerontology is going to be an important are of study.

 


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