Fintech in Monetary and Payment Systems

Abstract

Abstract This chapter analyses Fintech application in monetary and payment systems, as a final case study. Money is at the heart of any financial system. Both public and private sectors have proposed to create their own digital currency for the future economy. The chapter discusses the operating mechanisms, benefits, and limitations of three generations of digital money: blockchain-based cryptocurrencies (e.g., BTC and Ethereum) and stablecoins (e.g., Tether and Diem), as well as CBDCs (e.g., Digital Pound, Digital Euro, Digital Yuan, Digital Dollar). It assesses popular mobile payment systems around the world (e.g., Apple Pay, Android Pay, Alipay, WeChat Pay), including those based on NFC technology or QR code. It also analyses the official initiative of building a cashless society proposed by governments and financial authorities. The case study of digital money showcases the breadth and depth of the global Fintech revolution.