Digital payments system and market disruption

Miglionico, A. ORCID: https://orcid.org/0000-0002-2114-6709 (2023) Digital payments system and market disruption. Law and Financial Markets Review. pp. 1-16. ISSN 1752-1459 doi: 10.1080/17521440.2023.2215481

Abstract/Summary

The traditional banking functions of lending, deposit-taking and payment intermediation are being unbundled in the new frontiers of money that extend from virtual currencies to crypto-assets and from shadow payments to quasi-money. The possibility for digital-centred change in the financial industry is illustrated by distributed ledger technology, of which ‘blockchain’ is the most prominent example of automated decision-making. Other forms of decentralised supply of money, payment services, and funding processes may allow households and businesses to obtain loans and pool risks without having recourse to financial intermediaries. This article examines the alternative provision of access to low-cost zero-friction payments from the perspective of the underbanked. Promoting innovation through alternatives to credit means integrating vulnerable and excluded customers into mainstream financial systems. Blockchain technology backed by a possible modification of the law on the recognition and transfer of property rights might prove instrumental in unlocking the value of the assets possessed by the underbanked or even the unbanked.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/112146
Identification Number/DOI	10.1080/17521440.2023.2215481
Refereed	Yes
Divisions	Arts, Humanities and Social Science > School of Law
Uncontrolled Keywords	Law, Finance
Publisher	Informa UK Limited
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