Purpose - This paper aims to provide a first overview of important implications of payment models for next-generation mobile service platforms (NextGen MSPs).Methodology and approach - Our starting point is an existing set of mobile payment models. We modify and expand on these models, in order...

In our paper, we introduce the Hungarian Payment System Model (HUPS), a computable general equilibrium model with detailed payment services which can be used for policy evaluation and forecast. In the last years, several studies investigated different aspects of payment systems and some papers...

Using a representative sample of the U.S. adult population, we analyze which payment methods consumers use to pay other consumers (p2p) and how these choices depend on transaction and demographic characteristics. We additionally construct a random matching model of consumers with diverse...

In recent years, cryptocurrencies such as Bitcoin have emerged, in upcoming years, corporate currencies such as Libra (Diem) and central bank digital currencies will emerge even in low-inflation developed economies. Using the dual currency search model of Kiyotaki and Wright (1993), we show how...

We study how the introduction of a central bank-issued digital currency affects interest rates, the level of economic activity, and welfare in an environment where both central bank money and private bank deposits are used in exchange. Banks in our model are financially constrained, and the...

Privacy is a feature inherent to the use of cash for payments. With steadily increasing market shares of commercial digital payments platforms, privacy in payments may no longer be attainable in the future. In this paper, we explore the potential welfare impact of reductions in privacy in...

The purpose of the paper is to consider how the financial system might change from technology that is introducing new forms of electronic money that by-passes banks, current laws and institutional practices. The introductory first Section identifies the illogical and inefficient features of the...

This paper challenges widespread preconceptions about cryptocurrencies and other crypto assets. They are not monetary tokens or objects but accounting entries (like deposit money and custodian bank security accounts). Their innovation is not ‘decentralisation' but use of single (rather than...

Can a monetary system in which privately issued cryptocurrencies circulate as media of exchange work? Is such a system stable? How should governments react to digital currencies? Can these currencies and government-issued money coexist? Are cryptocurrencies consistent with an efficient...

Monetary policy space remains constrained by the lower bound in many countries, limitingthe policy options available to address future deflationary shocks. The existence of cashprevents central banks from cutting interest rates much below zero. In this paper, we considerthe practical feasibility...