Privacy Provision, Payment Latency, and Role of Collateral

Author/Editor:

Charles M. Kahn ; Caitlin Long ; Manmohan Singh

Publication Date:

July 31, 2020

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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.

Series:

Working Paper No. 20/148

Subject:

Frequency:

regular

English

Publication Date:

July 31, 2020

ISBN/ISSN:

9781513551944/1018-5941

Stock No:

WPIEA2020148

Format:

Paper

Pages:

11

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