IDEAS home Printed from https://ideas.repec.org/a/bfr/fisrev/20162011.html
   My bibliography  Save this article

Money and payments in the digital age: innovations and challenges

Author

Listed:
  • Velde, F.

Abstract

Virtual currencies like bitcoin are protocols that maintain consensus among participants about legitimate ownership of assets; ownership is transferred by modifying the consensus appropriately. In monetary applications the asset is a chain of transactions in scarce supply because the initiation of valid chains is restricted. Similar protocols, using a variety of methods to establish consensus, could facilitate simple or complex transfers of financial assets and reduce transaction and record-keeping costs, but doing so will require costly changes. Distributed ledgers replace trust between counterparties with trust in the protocol. Regulators will need to adapt their frameworks to ensure that the actors in payments and markets abide existing rule and do not create new risks, but also to protect the trust in the new protocols.

Suggested Citation

  • Velde, F., 2016. "Money and payments in the digital age: innovations and challenges," Financial Stability Review, Banque de France, issue 20, pages 103-111, April.
    • Handle: RePEc:bfr:fisrev:2016:20:11
    as

    Download full text from publisher

    File URL: https://publications.banque-france.fr/sites/default/files/medias/documents/financial-stability-review-20_2016-04.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bfr:fisrev:2016:20:11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael brassart (email available below). General contact details of provider: https://edirc.repec.org/data/bdfgvfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.