The Future of Financial Systems in the Digital Age : : Perspectives from Europe and Japan.

• Superior document: Perspectives in Law, Business and Innovation Series
• Author: Heckel, Markus.
• TeilnehmendeR: Waldenberger, Franz.
• Place / Publishing House: Singapore : : Springer Singapore Pte. Limited,, 2022.; ©2022.
• Year of Publication: 2022
• Edition: 1st ed.
• Language: English
• Series: Perspectives in Law, Business and Innovation Series
• Physical Description: 1 online resource (209 pages)

Table of Contents

Intro -- Preface -- Contents -- Editors and Contributors -- About the Editors -- Contributors -- Abbreviations -- List of Figures -- List of Tables -- Financial Systems in the Digital Age: Perspectives from Europe and Japan -- 1 Motivation and Background -- 2 Financial Systems: Functions, Resources, and Design -- 3 Japan and the Euro Zone -- 3.1 Basic Economic Data -- 3.2 Financial Systems -- 3.3 Digitalization -- 4 DX and Finance: An Extended Overview -- 4.1 The Informational Nature of Finance -- 4.2 Infrastructures -- 4.3 Knowledge Base -- 4.4 Trust -- 4.5 Legislation and Regulatory Oversight -- 4.6 Impact on Design -- 5 Concluding Remarks -- References -- The Future of Japan's Financial Market -- 1 Introduction -- 2 Influence of ICT Development on Financial Transactions -- 2.1 Transaction Costs and Financial Transactions -- 2.2 The Unceasing Development of ICT -- 3 Financial Transactions and Financial Legislation -- 3.1 Grand Design of Financial Legislation -- 3.2 Peculiarities of Japan's Financial Legislation -- 4 Innovation of Financial Services Caused by ICT Developments -- 4.1 Innovation of Financial Services -- 4.2 Development of Financial Services in Japan -- 5 Recent Developments of Financial Markets -- 5.1 Recent Innovations in Financial Markets -- 5.2 Change of the Role of Financial Market Infrastructures -- 6 Challenges for Japan's Financial Legislation -- 6.1 Adjustment of Financial Legislation in Response to Advancements in ICT -- 6.2 Legal Foundation of the Collective Clearing System -- 6.3 Challenges for Japan's Financial Legislation -- 7 Closing Remarks -- References -- Financial Digitalization and Regulatory Challenges for Japan -- 1 Introduction -- 2 The Five Ds -- 3 Regulatory Responses and Challenges -- 3.1 Visions Guiding the Regulatory Response to Financial Digitalization -- 4 New Issues Under COVID-19.

4.1 Acceleration of DX -- 4.2 The Three Ss -- 4.3 Role of the Financial Sector and Financial Digitalization -- References -- Digital Currencies and the Future of Money -- 1 The Modern Monetary System -- 1.1 Brief History of the Modern Monetary System -- 1.2 Benefits and Advantages of the Modern Monetary System -- 2 Digital Innovation and Challenges to the Modern Monetary System -- 2.1 Digital Innovation and the Monetary System -- 2.2 New Challenges to the Modern Monetary System -- 2.3 Central Bank Digital Currencies -- 3 The Potential of Digital Currencies Issued by Private Entities -- 3.1 Issues to Be Resolved in Japan's Payment Infrastructure -- 3.2 The Concept of "Private-Led" and "Two-Layered" Digital Currency -- 3.3 The Digital Currency Forum -- 4 Digital Currency and the Future of the Monetary System -- 4.1 Challenges to the Modern Monetary System Triggered by Digital Innovation -- 4.2 The Monetary System and Nation States -- 4.3 The Monetary System and the Two-Tiered Structure -- 4.4 Competition Among Currencies -- 4.5 Public and Private Initiatives to Shape the Future of the Monetary System -- 5 Outlook -- References -- Central Bank Digital Currencies in a World with Negative Nominal Interest Rates -- 1 Introduction -- 2 The Risk of Structural and Cyclical Bank Disintermediation Through CBDC -- 2.1 Effects on Bank Funding Costs of CBDC2 -- 2.2 Increase of Banks' Reliance on Central Bank Credit, Collateral Constraints, and Credit Centralization? -- 2.3 Bank Runs and Cyclical Bank Disintermediation Through CBDC -- 3 NIRP and CBDC -- 4 A Two-Tier Remuneration System for CBDC -- 5 Conclusion -- References -- The Future of Payments in a DLT-Based European Economy: A Roadmap -- 1 Introduction -- 2 Design Paradigms for a Future Payment Infrastructure -- 2.1 Account-Based Versus Token-Based Solutions.

2.2 Contract Execution, Digital Payment Infrastructure, and Monetary Unit -- 3 Euro-Denominated Payment Solutions for DLT-Based Smart Contracts -- 3.1 Account-Based Solutions -- 3.2 Token-Based Solutions -- 4 Roadmap -- 4.1 Time to Market for Different Payment Solutions -- 4.2 Fungibility and Interoperability -- 4.3 Time to Market and Use Cases for Private- and Public-Sector Solutions of the Digital Euro -- 4.4 Interoperability and Efficiency -- 5 Conclusion -- Appendix: Use Cases for the Digital Euro -- References -- Digitalization of Payment Instruments: Cashless Payments and Loyalty Points Systems -- 1 Introduction -- 2 Cashless Payments in Japan: Current Situation and Prospects -- 2.1 Why is Japan Encouraging Cashless Payments? -- 2.2 Government Indicators and the Current State of the Cashless Economy -- 2.3 Why Are Cashless Payments Slow to Gain Traction? -- 2.4 Japan Remains a Cash-Oriented Society -- 2.5 We Need to Understand How Consumers Use Cashless Payments -- 2.6 Areas of Competition and Cooperation for Private Companies -- 2.7 Can a Loyalty Points System Boost the Spread of Cashless Payments? -- 3 Prevalence and Nature of Digital Points Systems -- 3.1 Are Loyalty Points Japan's Corporate Pseudo-currency? -- 3.2 The Scale of Loyalty Points Systems -- 3.3 The Incomplete Function of Loyalty Points as Currency -- 3.4 How Platform Companies Turned Loyalty Points into a Pseudo-currency -- 3.5 Fun Features Differentiating Loyalty Points from "Money" -- 3.6 Latent Regulatory Issues -- 4 The Future of Cashless Payments and Digital Points Systems -- References -- The Changing Landscape of Retail Banking and the Future of Digital Banking -- 1 Introduction -- 2 Retail Banking from Past to Present -- 3 Digital Transformation in Banking -- 4 The Future of Banking -- 4.1 The Future of Banking is Digital -- 4.2 Three Stages of Evolution.

4.3 Present and Future Developments in Value Chains -- 5 The Changing Landscape: Where Do Banks and Fintechs Stand in the Market? -- 5.1 Four Strategies to Counter Fintechs -- 5.2 The Bank-Fintech Relationship: The Other Side of the Coin -- 5.3 How Are Banks Responding to the Changing Game? -- 6 Outlook -- References -- High-Frequency Trading in Japan: A Unique Evolution -- 1 Introduction -- 1.1 Is High-Frequency Trading Fintech? -- 1.2 Recognizing the Social Significance of HFT -- 1.3 The Movement Toward Greater Regulation of HFT Around the World -- 1.4 HFT May Play a Role in Shaping Business Models in Japan's Securities Industry -- 2 Algorithmic Trading and HFT -- 2.1 Algorithmic Trading -- 2.2 Types of Algorithmic Trading -- 2.3 Using Machine Learning in Algorithm Construction -- 2.4 The Struggle Between AI Technologies -- 2.5 What is HFT? -- 2.6 Background to the Growth of HFT for Arbitrage in the US -- 2.7 Will HFT Approach the Speed of Light? -- 3 Reviewing the Historical Development of HFT in Japan and Around the World -- 3.1 HFT First Flourished in the US -- 3.2 HFT Firms Move to Japan from Saturated Markets Such as the US -- 3.3 Activities of HFT Firms in Japan's Highly Concentrated Market -- 3.4 The Domination of the Japanese Market by Foreign HFT Firms -- 4 Evaluation of the Impact of HFT on Financial Markets -- 4.1 HFT Effectively Enhances Market Functioning -- 4.2 Empirical Research Overseas on the Effect of HFT on Market Performance -- 4.3 Results of Research in Japan -- 4.4 The Possibility That HFT May Destabilize Markets -- 4.5 Conflicting Opinions on Whether HFT Amplifies Market Disruption -- 4.6 The Issue of Fairness in Trading -- 5 HFT Regulation as a Preventive Measure -- 5.1 HFT Regulation and System Response in the US -- 5.2 HFT Regulation in Europe -- 5.3 HFT Regulation in Japan.

5.4 Few Cases of HFT Unfair Trading Have Been Exposed in Japan -- 6 HFT and the Securities Sector in Japan Today -- 6.1 Japanese Securities Companies Delayed the Introduction of Practices from the US -- 6.2 Smart Order Routing and Order Book Information -- 6.3 The Emergence of Japan's Flash Boys? -- 6.4 The Movement to Introduce Payment for Order Flow in Japan -- 6.5 Information on Orders by Individual Investors is Valuable for HFT Firms -- 6.6 Against the Backdrop of Commission-Free Trading -- 6.7 Are the Interests of Individual Investors Being Protected? -- 6.8 Research on HFT is Still in Its Infancy -- References -- Index.