On the state-of-the-art of FinTech world and the initial approach of central banks

Abstract

This paper aims to provide a state-of-the-art analysis about the FinTech and the cryptocurrencies phenomena. Given the focus of the central banks all over the world, we will discuss three main aspects: technology, economics and regulation. Technology seems to be the most important revolution brought by cryptocurrencies: it is employed for many purposes that depart from the original one of distributed ledger for storing transactions. The traditional financial intermediaries are trying to prevent the disruption of the current financial system by cooperating with the FinTech start-ups. Regarding the economic aspect, we deal with the comparison between what academia has been proposing for incorporating cryptocurrencies in the economy and what central banks and banks are doing. Regulation has mainly adopted a 'wait and see approach' and it is very fragmented around the globe. Regulation is mainly oriented in exploiting technology, acquiring the new name of RegTech.