Mario Marcel: High-level policy panel discussion on central bank digital currencies
Remarks by Mr Mario Marcel, Governor of the Central Bank of Chile, at the “High-level Policy Panel Discussion on Central Bank Digital Currencies”, OECD Global Blockchain Policy Forum, Paris, 12 September 2019.
Zaldivar on TEDx (in Spanish)
| 11 pages
Disruptive technologies in Finance or “FinTech” are transforming the financial industry landscape, challenging traditional business models. These technologies have been able to address some gaps in the traditional financial industry that can be grouped into five categories: Access, Speed, Cost, Transparency, and Security.
Leveraging on open-source technologies and Smartphone penetration, FinTech has seen fast adoption, disrupting all areas of the financial services such as payments, investments, savings & lending, insurance and risk management.
One example of the innovation across different financial services is this research framework from the World Economic Forum. Fintech innovations are identified and grouped into clusters, which in turn are a result of innovation triggered by common themes that cut across financial services. These themes are enabled by different technologies.
Chile: Capital flows and the migration of risks – the recent Chilean experience
Remarks by Mr Mario Marcel, Governor of the Central Bank of Chile, at the Session 4 “Next vulnerabilities: capital flows and the migration of risks to new corners of the financial system” at the High-level policy seminar on “Integration or Framentation? International Capital Flows in the Post-Crisis World”, arranged by the OECD and the Ministry of Finance of Japan, as Governance of G20 in 2019, Paris, 11 September 2019.
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1. Issues for discussion
a. Which new sources of vulnerabilities are building up a decade after the 2008 crisis?
– Risks associated with the growing importance of non-bank lenders. In some EMEs, this may result in credit lending going informal due to a relatively higher cost in credit provision due to regulation.
– Risks that can emerge from a less developed financial infrastructures outside the regulatory perimeter.
– Risks attributed to disruptive FinTech activities, such as the development of crypto-assets markets, as well as cybersecurity issues.
– Risks and challenges associated with the changing nature of banks’ business model. In particular, those coming from the internationalization of banks’ activities.
b. How to better consider a cost-benefit framework for financial regulation, such as currency-based measures (CBM)?
– While the banking regulation and supervision arising from the 80s-banking crisis was restrictive in several ways, it was supported by sound monetary and fiscal policies.
more from the Author:
Mario Marcel: Chile – the view from the Central Bank
Presentation by Mr Mario Marcel, Governor of the Central Bank of Chile, at the “Southern Cone & Andean Opportunities Conference”, arranged by JP Morgan, Santiago de Chile, 26 April 2017.
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Current macroeconomic conditions and prospects in the monetary policy scenario
1. The last few months have brought mixed signals for the Chilean economy. On the one hand, 2016 ended in a low tone, with a slowdown in activity and inflation. A series of one-off events extended economic weakness into the first quarter of 2017, lowering forecasts for the year as a whole. On the other, the global outlook appears more favorable, both for the growth of trade partners and terms of trade. This suggests a gradual improvement of economic prospects for the Chilean economy which should be further supported by an expansionary monetary policy as long as inflation remains below target.