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2. Is the COVID-19 crisis an opportunity to boost the euro as a global currency?
- Author:
- Gregory Claeys and Guntram B. Wolff
- Publication Date:
- 06-2020
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- The euro never challenged the US dollar, and its international status declined with the euro crisis. Faced with a US administration willing to use its hegemonic currency to extend its domestic policies beyond its borders, Europe is reflecting on how to promote it currency on the global stage to ensure its autonomy. But promoting a more prominent role for the euro is difficult and involves far-reaching changes to the fabric of the monetary union.
- Topic:
- Health, European Union, Currency, and COVID-19
- Political Geography:
- Europe and Global Focus
3. The Practice and Potential of Blockchain Technologies for Extractive Sector Governance
- Author:
- Natural Resource Governance Institute
- Publication Date:
- 09-2020
- Content Type:
- Special Report
- Institution:
- Natural Resource Governance Institute
- Abstract:
- Important questions are being raised about whether blockchain technologies can contribute to solving governance challenges in the mining, oil and gas sectors. This report seeks to begin addressing such questions, with particular reference to current blockchain applications and transparency efforts in the extractive sector. It summarizes analysis by The Governance Lab (GovLab) at the New York University Tandon School of Engineering and the Natural Resource Governance Institute (NRGI). The study focused in particular on three activity areas: licensing and contracting, corporate registers and beneficial ownership, and commodity trading and supply chains.
- Topic:
- Science and Technology, Governance, Currency, and Blockchain
- Political Geography:
- Global Focus
4. Potential of Blockchain Technology for Trade Integration of Developing Countries
- Author:
- Jakob Schwab and Jan Ohnesorge
- Publication Date:
- 01-2019
- Content Type:
- Policy Brief
- Institution:
- German Development Institute (DIE)
- Abstract:
- Blockchain technology (BT), famous due to its use in digital currencies, also offers new opportunities in other fields, one of which is trade integration. Developing countries especially could benefit from greater trade integration with BT, as the technology can, for example, remedy deficiencies with regard to financial system access, intellectual property protection and tax administration. BT allows virtually tamper-proof storage of transactions and other data on decentralised computer networks. In fact, it is possible to store not only data, but also entire programmes this securely: Smart contracts enable the automation of private transactions and administrative processes. This article summarises the latest research on the use of BT in trade integration by examining in more detail five key and, in some cases, linked fields of application. The first is trade finance, where BT could deliver direct cost savings for exporters and importers by removing the need for credit-lending intermediaries. Second, tamper-proof storage of information on the origin and composition of goods could enhance supply chain documentation. This makes it possible to more reliably verify compliance with sustainability standards, particularly for globally produced goods. However, for the information in blockchains to be truthful, it must be entered correctly (it is then tamperproof), a process that therefore requires monitoring. Third, BT could deliver improvements in the field of trade facilitation by making it easier for border authorities to access information on goods and thus easing reporting requirements for exporting firms. By reducing dependence on central database operators, BT could help bring about a breakthrough with existing digital technology in the area of trade. Fourth, facilitating access to information on goods could also simplify customs and taxation procedures and make them less vulnerable to corruption and fraud. This goes hand in hand with cost reductions for exporters and better mobilisation of domestic resources for public budgets. Fifth, in the field of digital trade, BT also facilitates management of digital file rights in environments where, for institutional reasons, there is little intellectual property protection. This could help to promote digital industries in developing countries. However, when it comes to using BT in border and customs systems in particular, it is essential to involve the relevant authorities at an early stage. At the same time, it is necessary to promote uniform technical standards for supply chain documentation in order to safeguard interoperability between the different systems across actors and national borders and thus fully leverage the cost advantages. If these guidelines are taken into account, then BT could effectively support sustainable trade integration of developing countries.
- Topic:
- Science and Technology, Currency, Trade, Integration, and Blockchain
- Political Geography:
- Germany and Global Focus
5. The Function Transformation of Central Banks and Commercial Banks under the Application of Digital Fiat Currency
- Author:
- Song Shuang and Liu Dongmin
- Publication Date:
- 04-2019
- Content Type:
- Policy Brief
- Abstract:
- Since the advent of Bitcoin, digital currency and its underlying distributed ledger technology have been spread and applied rapidly around the world. Traditionally, currency issuance and circulation are based on binary tree structure, with the central bank as the highest node, commercial banks in the middle and the public and enterprises at the bottom. However, in the distributed ledger system, all nodes have similar privileges and can transact with each other directly. Hence, the advocators promote the potential of digital currency to subvert the monetary control of sovereign countries and alter the traditional business of commercial banks with the characteristics of decentralization, trust-free intermediary, non-tampering and encryption security. On the other hand, the dissenters believe that transaction nodes in distributed ledger system will be greatly increased, and hence reducing the professionalism of transaction processing and forfeiting the authenticity of original information, which then becomes difficult to play a significant role in the future economy.
- Topic:
- Science and Technology, Economy, Banks, Central Bank, Currency, and Bitcoin
- Political Geography:
- China and Global Focus
6. Digital Fiat Currency, SDR and New Cross-Border Payment System
- Author:
- Liu Dongmin and Song Shuang
- Publication Date:
- 03-2018
- Content Type:
- Policy Brief
- Abstract:
- Emerging economies have played more and more important roles in the world, and have become a significant drive in the reform of global financial governance to push it towards the direction of inclusiveness and resilience. As a key part of the international financial architecture, the dollarized cross-border payment system has not been changed correspondingly. Along with the rapid development of digital currency, the digital fiat currency (DFC) endorsed by national credit shows great potential in improving the current cross-border payment system. We propose that the new system based on DFC can be done in three patterns and the third one is most feasible: IMF-leading pattern, countries-leading pattern and the coexisting pattern. The new system will effectively reduce the transmission time and cost of cross-border payment services due to DFC’s peer-to-peer mode. Moreover, as the new system becomes more open, more flexible and more inclusive, all the developing countries will get fair and easy access to these services.
- Topic:
- Finance, Currency, and Economic Development
- Political Geography:
- China, Global Focus, and Global Markets
7. Currency Crashes in Industrial Countries: Much Ado About Nothing?
- Author:
- Joseph Gagnon
- Publication Date:
- 02-2009
- Content Type:
- Working Paper
- Institution:
- Board of Governors of the Federal Reserve System
- Abstract:
- Sharp exchange rate depreciations, or currency crashes, are associated with poor economic outcomes in industrial countries only when they are caused by inflationary macroeconomic policies. Moreover, the poor outcomes are attributable to inflationary policies in general and not the currency crashes in particular. On the other hand, crashes caused by rising unemployment or external deficits have always had good economic consequences with stable or falling inflation rates.
- Topic:
- Economics, Exchange Rate Policy, Inflation, and Currency
- Political Geography:
- Global Focus