Central Banks and Payment Systems

Abstract

While some central banks were initially established as government iscal agents (most famously, the Bank of England in 1694; see Clapham 1944), in most cases these institutions were soon drawn into a payments role (Roberds and Velde, 2014). Today, payment systems continue to be a key part of central banking, and central banking remains at the center of payments. Private payment systems are important throughout Europe and North America. Innovative private systems are ubiquitous, from systems for small retail payments, such as PayPal or Square, through large value systems like CHIPS and EU-RO1, and up to the international CLS system. But central bank systems-Fedwire, TARGET, CHAPS, and so on-continue to be the backbone for the rest of payments.

Towards the holy grail of cross-border payments

“…In short, a bill of exchange was a written order by the issuer (drawer), which instructed a counterparty (drawee) to remit an amount, either immediately through a sight-bill or by a fixed date via a term-bill. If the drawee failed to pay (known as a "protest"), the drawer would be entitled to seek compensation through the courts, which would immediately execute an order against the failing party (Kahn, Quinn and Roberds 2014;Bolton and Guidi-Bruscoli, 2021).…”

Factors Affecting Household Cash Usage in Turkey

“…Anket sonuçları, bireylerin ödeme noktasındaki nakit tercihlerinde, nakdin hızlı ödeme imkânı ve harcama kontrolü sağlaması özelliklerinin etkili olduğunu göstermektedir. Probit model sonuçları, (i) yaşın ödeme aracı tercihinde etkili olduğunu, en genç yaş grubunda (15)(16)(17)(18)(19)(20)(21)(22)(23)(24) yer alan gençlerin ödemelerini daha çok nakitle gerçekleştirdiğini, 25-34 yaş arasındaki gençlerin ise yaşlılara göre nakdi daha az kullandığını, (ii) kredi kartı kullanımının yaşla arttığını, (iii) eğitim durumu, cinsiyet ve gelir durumunun ödeme davranışı üzerinde etkili olduğunu, gelir ve eğitim seviyesi arttıkça kartlı ödemelerin daha fazla tercih edildiğini (Bu durum nakdin harcama kontrolü sağlaması faydasının düşük gelirli kesimler için daha anlamlı bulunması ile ilişkilendirilmiştir. ), (iv) nakit kullanımının bölgeler arasında farklılaştığını göstermektedir.…”

Casting Light on Central Bank Digital Currencies

“…Financial integrity covers, among other things, anti-money laundering and combating the financing of terrorism (AML/CFT) rules, including customer due diligence measures and additional measures aimed at fighting corruption and fostering good governance. There is a fascinating historical account of the birth of central banking in Europe in Kahn, Quinn, and Roberds (2014). Coins were the predominant form of money in medieval times and during the early Renaissance.…”