IMF Working Papers

Privacy Provision, Payment Latency, and Role of Collateral

By Charles M. Kahn, Caitlin Long, Manmohan Singh

July 31, 2020

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Charles M. Kahn, Caitlin Long, and Manmohan Singh. Privacy Provision, Payment Latency, and Role of Collateral, (USA: International Monetary Fund, 2020) accessed December 6, 2024

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Summary

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.

Subject: Bank deposits, Banking, Central Bank digital currencies, Collateral, Currencies, Financial institutions, Financial markets, Financial services, Money, Payment systems, Technology

Keywords: Bank deposits, Central Bank digital currencies, Collateral, Collateral reuse, Currencies, Digitial tokens, Global, Latency cost, Payment arrangement, Payment latency, Payment settle, Payment solution, Payment system, Payment systems, Payments medium, Payments provider, Payment-system user, Privacy provision, Status quo payment system, WP

Publication Details

  • Pages:

    11

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2020/148

  • Stock No:

    WPIEA2020148

  • ISBN:

    9781513551944

  • ISSN:

    1018-5941