Rebuilding Macroeconomics’ Finance Hub held its second workshop to discuss the interdisciplinary approaches to financial resilience and stability. We focused on digital currencies and their impact on regulation and central banking.
In the first session, we considered whether the new shadow payment systems creates new risks and, if so, how they should be handled. This is important because peer-to-peer payment systems such as PayPal, mobile money platforms such as M-Pesa, and crypto-currency exchanges such as Mt. Gox are not part of the established banking system and not subject to the same regulation. In many senses, ‘digital currencies’ is a misnomer because they are not, strictly speaking, currencies (more later-on).