This article examines the transformative evolution of transaction processing systems from traditional batch processing to real-time payment mechanisms. The historical progression and architectural distinctions between these paradigms while analyzing the critical transition factors that facilitated this evolution. The discussion encompasses the enabling technologies—including API-driven banking, distributed ledger solutions, and cloud computing infrastructure—that have revolutionized payment processing capabilities. Through the demonstration of current implementation cases across peer-to-peer transfers, business transactions, and international remittances, the article provides insights into practical applications and market adoption patterns. The exploration extends to emerging trends, including central bank digital currencies, artificial intelligence for fraud detection, and enhanced security frameworks. The article concludes with a forward-looking discussion of research imperatives addressing cross-border payment efficiency, monetary policy implications in real-time environments, and financial inclusion opportunities through modernized payment infrastructure. This comprehensive article provides valuable perspectives on the technological, operational, and policy dimensions of payment system evolution for financial professionals, technology implementers, and policy researchers.
Francisco Jareño, María de la O González, José M. Almansa
BackgroundThis study examines the impact of interest rate fluctuations on the returns of traditional, 'green', and 'stable' cryptocurrencies from April 2019 to April 2023. Bitcoin, Cardano, and Tether represent these categories due to their market significance.MethodsUsing quantile regression (QR), the study analyzes the impact of interest rate shocks on cryptocurrency returns during bullish and bearish market periods. It also decomposes nominal interest rates into real interest rates and inflation expectations. The sample period is divided into stable and rising interest rate sub-periods for robustness.ResultsThe results show that cryptocurrency returns are more sensitive to interest rate fluctuations in both bullish and bearish periods. The sensitivity varies across cryptocurrency types, with Cardano acting as a hedge against inflation risk during bearish periods.ConclusionsThe results support the research hypotheses and provide insights into the behavior of cryptocurrencies under different market conditions. These findings help portfolio managers and policymakers to make informed decisions in a digital financial environment. Future research should explore the interactions between cryptocurrencies and other financial markets.
This paper explores the intersection of cryptocurrency, macroeconomics, and U.S. financial hegemony in the emerging era of digital money. It argues that USD-backed stablecoins—such as Circle’s USD Coin (USDC) and Tether (USDT)—offer a new digital mechanism through which the United States can extend the global dominance of the U.S. dollar. Drawing from economic history, international relations theory, and decentralized finance (DeFi) innovations, the analysis situates stablecoins within a broader strategy of digital statecraft. The paper compares dollar-based crypto adoption with competing central bank digital currency (CBDC) initiatives, such as China’s digital yuan and the BRICS currency proposals, assessing their geopolitical and macroeconomic implications. Key themes include de-dollarization, programmable money, financial inclusion, and the role of digital currencies in shaping future capital flows and trade dynamics. The findings suggest that stablecoins not only replicate the traditional advantages of dollar dominance in global trade and reserves, but may also amplify them through blockchain efficiency and global reach—potentially consolidating U.S. monetary power in a multipolar world. Policy recommendations are offered for U.S. regulators to support strategic adoption of regulated stablecoins as tools of financial diplomacy and global economic leadership.