Category Archives: Financial Stability

Stablecoins, Market Integration and Contagion

Stablecoins are a type of digital asset that purports to maintain a stable value by referencing physical, financial or virtual assets (FSB (2020)). They can be further differentiated into currency-based, financial instrument-based, commodity-based and crypto asset-based stablecoins. There are also algorithmic stablecoins that aim to maintain a stable value via protocols that provide for the […]

The Rise of Central Bank Digital Currencies in the Caribbean

Despite the relatively widespread adoption of mobile and internet technology in the Caribbean, retail payments[i] are characterised by “high costs and insufficient access for large swathes of the region’s population (BIS (2020)).” The lack of access to a regular bank account or to other services of financial institutions through mobile devices adversely impacts people from […]

To Bail-In or not To Bail-In: A Question for Asian Financial Policymakers

The Great Financial Crisis (GFC), which began in 2007 and whose effects persisted for a decade, spurred a cavalcade of major worldwide regulatory, supervisory, and resolution reforms for the banking sector and the broader financial sector.  In particular, the massive costs incurred by resolution and deposit insurance authorities (and ultimately, taxpayers) to clean up failed […]

Buy Now, Cry Later? A Look Into a New Phenomenon in Digital Payments and E-Commerce

Over the last few years, the growth of ‘buy now, pay later’ (BNPL) services has been exceptional. This niche product, finding itself conveniently at the intersection of the burgeoning digital payments and e-commerce spheres, and appealing to a new generation of spenders more comfortable with technology and less concerned about privacy than their predecessors, has […]

Bitcoin’s 2021 Bull Run: What has Changed since 2017?

In February 2021, the price of Bitcoin skyrocketed to over US$58,000 after Elon Musk’s Tesla said it had bought up US$1.5 billion of the cryptocurrency. One major Bitcoin investor said he saw the price rising to US$100,000 by the end of the year. The meteoric rise in the price of Bitcoin is more than 1,000 […]

Wall Street Bets Vs. The Street

The big story at the moment is how a community on the Reddit subgroup WallStreetBets has managed to bring to heel multi-billion dollar hedge funds who had been shorting GameStop shares. The shares are up a staggering 1,800 per cent in 2021, getting as high as US$480 at one point and now down to US$194 […]

COVID-19 and the Lessons for Widening Sustainable Finance

We are in the midst of an unprecedented pandemic. Apart from the tragic loss of life, the economic implications will be felt for years. This will not only be in terms of the businesses that have been closed down, many of which will never re-open, but also through effects on employment and career development, and […]

Crisis Preparedness in the Age of COVID-19: a Primer

Maintaining confidence and the smooth functioning of financial markets[i] Since the initial publication of this blog post, this article has been further developed into a full fledged SEACEN Policy Analysis Paper, which has been published on the SEACEN Centre Website on 15 May 2020. The paper can be accessed here. As the world shelters from […]

COVID-19: Financial Stability and Business Continuity Management – Part B

This is the second of a two-part series of our discussion on COVID-19, financial stability and business continuity management (BCM). In Part A we discussed the steps regulatory authorities can take to implement their own BCM programs, and expect from their regulated FIs, during the current pandemic. This blog post is Part B, and is […]

Coronavirus and the Global Economy: Central Banks’ Policy Responses Update 1

This post is an update of our blog Coronavirus and the Global Economy: Central Banks’ Policy Responses published on 5 March 2020, chronicling central banks and policymakers’ responses to COVID-19. We note that the COVID-19 outbreak has generated both demand and supply shocks reverberating across the global economy. Among major economies outside of China, the […]