Looking Back, Looking Forward: Regulatory Technology after COVID-19
In this episode of Looking Back Looking Forward: Regulatory Technology after COVID-19, Douglas Arner discusses the implications of COVID-19 for RegTech and SupTech: the use of technology for regulatory and supervisory purposes. Non-face-to-face interactions due to lockdowns and other COVID-19 measures have allowed the pursuance of digital reporting and analytics to not only create efficiency but also achieve regulatory and supervisory objectives for financial systems to support sustainable development more broadly.
“Looking Back, Looking Forward” is a video series with HKU Kerry Holdings Professor in Law Douglas Arner discussing issues in financial law, technology (FinTech) and regulations.
The Future of Money with Henri Arslanian
In Issue 44 of this series, which covers recent topical developments, Henri Arslanian shares some ideas on:
- How Bitcoin Can Actually Help the Development of Renewable Energies
- What Is Bitcoin Pizza Day?
- What Does Coinbase’s Q1 Shareholder Letter Teach Us?
Read the post here
New Article: Reshaping the Design of Money
Sovereign Digital Currencies: Reshaping the Design of Money and Payments Systems by Ross Buckley (University of New South Wales), Douglas Arner (University of Hong Kong), Dirk Zetzsche (University of Luxembourg), Anton Didenko (University of New South Wales), Lucien van Romburg (University of Hong Kong) :: SSRN
While Bitcoin and its progenies could be safely ignored by regulators, Facebook’s proposal for Libra, a global stablecoin, brought an immediate and potent response from regulators globally. Any proposal by the private sector to move into the creation of currency — the traditional preserve of sovereigns — was always likely to trigger such a regulatory response, as well as the launch of sovereign digital currencies by other major central banks. While China has moved first, dozens of other countries are now investigating their own central bank digital currencies or other forms of sovereign digital currency. This paper argues that central banks should first focus not on rolling out novel new forms of sovereign digital currencies, but rather on transforming their payment systems.
New Article: Cross-border Payments
The Case for a Best Execution Principle in Cross-border Payments by Dirk Zetzsche (University of Luxembourg), Ross Buckley (University of New South Wales), Douglas Arner (University of Hong Kong), Maria Lucia Passador (Harvard University) :: SSRN
Cross-border payments suffer from a lack of speed and transparency and limited access, resulting in higher overall costs than domestic payments. This paper analyses how the best execution principle developed in the context of securities and derivatives could be applied to cross-border payments. Under that principle, financial institutions are legally required to provide the most advantageous order execution in terms of speed, risks and costs for their customers given the prevailing market environment.
New Article: Regulating Artificial Intelligence in Finance
Regulating Artificial Intelligence in Finance: Putting the Human in the Loop by Ross Buckley (University of New South Wales), Dirk Zetzsche (University of Luxembourg), Douglas Arner (University of Hong Kong), Brian Tang (University of Hong Kong) :: SSRN
This article develops a framework for understanding and addressing the increasing role of artificial intelligence (‘AI’) in finance. It focuses on human responsibility as central to addressing the AI ‘black box’ problem — that is, the risk of an AI producing undesirable results that are unrecognised or unanticipated due to people’s difficulties in understanding the internal workings of an AI or as a result of the AI’s independent operation outside human supervision or involvement.
After mapping the various use cases of AI in finance and explaining its rapid development, the authors highlight the range of potential issues and regulatory challenges concerning financial services AI and the tools available to address them.
Podcast: Around the World with Hong Kong University's Douglas Arner
AIR (Alliance for Innovative Regulation)’s Barefoot Innovation Podcast invited Professor Douglas Arner to share his thoughts on the transformations of fintech and regtech in today’s high-tech world, from electronic payments and cryptocurrencies to cloud computing to data regulation.