Privacy Provision, Payment Latency, and Role of Collateral

Charles Kahn, Caitlin Long and Manmohan Singh

No 2020/148, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; payments medium; payment latency; payment solution; payment-system user; payment settle; privacy provision; collateral reuse; digitial tokens; payment system; payments provider; latency cost; Payment systems; Currencies; Bank deposits; Collateral; Central Bank digital currencies; Global; payment arrangement; status quo payment system (search for similar items in EconPapers)
Pages: 11
Date: 2020-07-31
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Citations: View citations in EconPapers (1)

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