HKU Introduction to FinTech MOOC: Looking Back Looking Forward: Covid-19 Implications by Professor Douglas Arner Arner (Kerry Holdings Professor in Law at the University of Hong Kong) In the May episode of Looking Back, Looking Forward, Professor Douglas Arner talks about the implications of COVID-19 for the future of the global economy and the global financial system. In his view, the longer the COVID-19 crisis lasts, the more likely the focus will be on long-term structural change, in place of short-term solutions. In this context, the spotlight is placed on the themes of 'technology, sustainability and globalisation versus fragmentation' through the guise of digital finance. To learn more, please join Introduction to FinTech on edX platform: https://www.edx.org/course/introduction-to-fintech

In this first episode of season three’s “Looking Back Looking Forward”, Professor Douglas Arner discusses the big issues relating to finance, technology and regulation for the new year. Topics expecting to make headway include asset pricing, potential financial crises, inflation, geopolitical issues and COVID-19. Crypto and digital assets, still causing concern by regulatory bodies, will continue to seek normalisation. Professor Arner also foresees central bank digital currencies and the Metaverse to rise among the topics for financial technology’s advancement in 2022.

In this episode of Looking Back Looking Forward, Professor Douglas Arner discusses data and its integration in the financial sector. In one of the world’s most digitised industries, datafication is at the core of finance. Professor Arner also shares on data governance’s influence on countries’ jurisdictions, including the challenges it may apply on financial services and economies. These topics, and more, are further examined in the newly published article “Financial Data Governance: The Datafication of Finance, the Rise of Open Banking and the End of the Data Centralization Paradigm (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4040604)” by Professor Arner, Giuliano Castellano and Eriks Selga. #data #finance #governance

In this episode of Looking Back Looking Forward, Professor Arner discusses the implications of weaponising finance, particularly in the case of the Russian-Ukrainian War. The digital infrastructure of finance, which connects countries to one another, is now being held amongst the developing crises in Ukraine. How can companies or individuals excluded from the international payment system combat such actions? Will a new monetary instrument be able to dominate existing major currencies? These questions and more are presented in the challenge digitisation is facing in the wake of the Russian-Ukraine War.

In this episode of Looking Back Looking Forward, Professor Douglas Arner underlines major sustainability crises and the potential finance, in particular digital finance, has to adapt to such global events. Could the digitisation of financial services be the foundation to protect economies and societies from such volatilities? Or will the standardisation of ethics prove to be the most critical factor? Watch to find out how finance can have certainty in uncertain times.

In this episode of Looking Back Looking Forward, Professor Douglas Arner discusses the risks imposed upon digital assets and the impacts on financial services and markets. Algorithmic stablecoins, maintaining stability in value between digital tokens and the US dollar, have encountered volatile development at the expense of its investors. This requires regulatory measures to be put in place for enabling administrative backing on such stablecoins, which Professor Arner highlights several options available for ensuring investor security and market protection.

In this episode of Looking Back Looking Forward, Professor Douglas Arner discusses digital identification and its implementation in countries like India and China as a means of entry into both public and private sectors. The COVID-19 Pandemic accelerated the use of digital identification systems to be integrated with interoperable electronic payments, and while these mechanisms provide biometrics on an individual level, they can also be applied to business and corporations. A recently published paper by @bisbribiz , "Corporate digital identity: no silver bullet, but a silver lining (authored by Professor Arner alongside David Leung, Bénédicte Nolens and Jon Frost), reviews possibilities in applying digital identification to companies in an effort for promoting market efficiency, financial inclusion and economic growth. Read the article here: https://www.bis.org/publ/bppdf/bispap126.htm

In this episode of Looking Back Looking Forward, Professor Douglas Arner discusses the future of the international monetary system, from its beginning when precious metals dominated as the major monetary instrument; to the US dollar’s linkage to gold; to the development of fiat currencies which serve as the prevailing international monetary instrument in today’s markets. Professor Arner also explains how geopolitical conflicts, such as the Russian-Ukrainian War, not only result in the weaponisation of the international monetary and payment system but also highlight the impacts of digital finance, causing countries to enhance their own domestic infrastructures.

In this episode of Looking Back Looking Forward, Professor Douglas Arner discusses the incredible changes in financial markets across the world, specifically related to inflation, and the role of central banks to alleviate the impacts on economies. High inflation rates, an earlier monetary response to COVID-19, has gradually expanded due to geopolitical factors and supply chain disruptions, thus driving up energy and food prices. Professor Arner also emphasises the need for governments to invest in infrastructure, education and research/development to restructure the productivity and economic functions of global economies over the longer term.

In this episode of Looking Back Looking Forward, Professor Douglas Arner focuses on RegTech, aka regulatory technology, and its increasing influence on regulatory and supervisory purposes by financial institutions to build better financial systems. Businesses are also in line to benefit from RegTech services, from reducing costs to increasing efficiencies. Professor Arner also emphasises on the role regulators can take in standardising disclosure requirements and enhancing its digital infrastructure to allow investors, governments, NGOs and others to improve their sustainable development goals. The CFTE Specialisation in RegTech programme is proud to be composed of Professor Arner, Janos Barberis, Claus Christensen, Simone di Castri, Subbaiyan Vaithinathan and Tyler Aveni in a five-course enrolment to understand the RegTech industry, its landscape and threats associated with the technology. Visit https://courses.cfte.education/regtech-online-specialisation/ to learn more!

In our special edition of Looking Back Looking Forward, Professor Arner highlights the developments in digital finance and what it means in the coming years. Amidst uncertainty in geopolitical conflicts and market volatilities, what challenges lie ahead? Will regulatory initiatives prove effective as digital assets’ influence gains traction? How can new technologies drive innovation onwards?

In this month’s episode of Looking Back Looking Forward, Professor Douglas Arner discusses the FTX fallout and the likely causes to its insolvency. Although emergency liquidity, often through central banks, can offer relief in traditional markets, the cryptocurrency platform's calamity stems from issues within Alameda Research, FTX’s sister company, including lack of internal controls and accounting systems. Professor Arner also emphasises the need for stronger regulation enforcement against fraud and manipulation to strengthen company liability and protect customer accounts and assets.

In this episode of Looking Back Looking Forward, Professor Douglas Arner discusses the effects from disasters impacting finance and the response for using technologies to aid those in need. From natural disasters to COVID-19, such health crises have encouraged the use of digital finance, particularly electronic payment systems, to be resilient in the face of such crises. Professor Arner also emphasises the need for greater access to smartphones, mobile payments, energy and transportation systems to the populations affected.

In this month’s episode of Looking Back Looking Forward, Professor Douglas Arner discusses the Crypto Winter and its impacts on financial services, from the volatilities in Bitcoin holdings to the collapse of major banks across the globe. The use of new technologies may not only thwart criminal activities on such platforms but may also monitor their positions and promote supervisory operations and communications. Professor Arner also emphasises the need for licensing, regulation and disclosure standards to prevent future failures in both crypto markets and traditional financial services.

In this episode of Looking Back, Looking Forward, Professor Douglas Arner explores the impact of ChatGPT and generative AI on finance. He traces the historical adoption of AI in areas such as securities trading, payments, asset management, risk management, and compliance. Factors like increased computing power, data availability, and algorithm advancements have fueled the rapid development of AI in finance. He highlights the transformative nature of ChatGPT and its ability to interface with diverse data sources, including proprietary models and institutional data. He discusses macro and micro regulatory concerns, such as the impact on employment, discrimination, and accountability. He also highlights that existing regulatory frameworks and explainability systems address these concerns, ensuring transparency and responsibility. Data and human rights laws, like GDPR, also influence AI use in finance. Despite challenges, Professor Arner underscores the immense transformative potential of generative AI systems in finance as well as the maximum value people can get from data and analytics. Further Reading: Artificial Intelligence in Finance: Challenges, Opportunities and Regulatory Developments edited by Nydia Remolina and Aurelio Gurrea-Martinez - https://www.amazon.com/Artificial-Intelligence-Finance-Opportunities-Developments/dp/1803926163 Topic Guide: 0:00 Introduction 0:19 ChatGPT and Generative AI in Finance 1:20 Securities Trading: Automation and AI in Action 3:17 Payments and Fraud: Enhancing Security and Efficiency 4:15 Asset Management: The Rise of Robo Advisory Services 4:49 Risk Management, Compliance, and More: AI Applications in Finance 6:18 Factors Driving AI Development in Financial Services 7:39 The Transformative Power of ChatGPT in Finance 9:57 Macro and Micro Regulatory Considerations 11:14 The Role of Explainability Systems in Addressing Concerns

In this episode of Looking Back Looking Forward, Professor Douglas Arner highlights the challenges associated with resolving the fourth crisis, which is driven by high interest rates. The crisis becomes even more difficult to address due to a complex combination of economic, financial, and climate-related issues, coupled with a diverse range of creditors. This poses a particularly daunting task for vulnerable countries that are already dealing with the consequences of COVID-19, the Russia-Ukraine war, and natural disasters. Furthermore, the exacerbation of climate issues further complicates efforts to stabilize and develop these economies, potentially leading to additional traumas and natural calamities. The fourth crisis presents significant obstacles that hinder finding an effective solution and addressing the underlying issues. Learn more: https://www.hkufintech.com/fintech-sustainability

In this episode of Looking Back, Looking Forward, Professor Douglas Arner explores a rethinking of the global currency system. Commencing with an examination of the historical evolution of the international monetary landscape, he discusses the enduring dominance of the US dollar, driven mainly by trust and convenience. The impact of pivotal political events, such as the Russian invasion of Ukraine, on international payment systems is closely scrutinized. ( A more detailed discussion of the topic can be downloaded and read now through SSRN by authors Douglas Arner, Ross Buckley, Dirk Zetzsche and Anton Didenko: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4613622 ) The discussion transitions to the realm of a technological revolution that is fundamentally reshaping the landscape of international transactions. Drawing from their research, Professor Arner contemplates on the possibility of a future currency system comprising a multitude of currencies from different countries, facilitating seamless global exchanges. He acknowledges the challenges inherent in BRICS' aspiration to establish a common currency, drawing valuable lessons from the European Union's euro experience. For regular insightful analyses at the intersection of finance, technology, regulation, and sustainability, subscribe to LBLF – Looking Back, Looking Forward on YouTube.

In this episode of Looking Back Looking Forward (LBLF), Douglas Arner's insightful discussion explores the monumental shift occurring in 2024, where digital assets are making the leap into regulation across pivotal jurisdictions worldwide. Arner thoroughly examines the competitive regulated digital assets industry, previously highlighted as one of the five key themes to watch for in 2024. In this video, discover the implications of this transformation, from the establishment of comprehensive standards to the entry of regulated financial institutions, shaping a new landscape for finance and the digital economy. LBLF provides a concise and analytical discussion of issues relating to the intersection of finance, technology, regulation, globalization and sustainable development. Led by The University of Hong Kong Professor Douglas Arner, LBLF focuses on major current issues in global finance, presenting them in their wider context. He also co-wrote the recently published book by Cambridge University Press entitled: Finance, Technology, and Regulation. More details here: https://www.hkufintech.com/book