Search Results (58)

Amid rising geopolitical fragmentation and growing uncertainty in global financial systems, Central Bank Digital Currencies (CBDCs) are increasingly viewed as a potential innovation in cross-border digital payments. This paper provides a systematic review of the literature on CBDCs, with a particular focus on their role in cross-border payment systems, while also considering broader implications for monetary power and geopolitical realignment. Using a PRISMA-based review approach, complemented by bibliometric mapping, the study synthesizes existing research across economic, technological, institutional, and geopolitical dimensions. Unlike prior studies that primarily examine technical design features or domestic monetary implications, this review develops an integrated framework that situates CBDCs within the evolving architecture of cross-border digital payment systems in a fragmented global environment. The evidence suggests that CBDCs can enhance cross-border payment efficiency by reducing transaction costs, shortening settlement times, and enabling more direct transfer mechanisms that bypass traditional correspondent banking networks. At the same time, the literature highlights several critical challenges, including interoperability constraints, regulatory divergence, privacy concerns, and cybersecurity risks. Importantly, the findings also point to the potential emergence of parallel digital currency ecosystems, which may reinforce existing financial fragmentation rather than fully resolve it. Overall, CBDCs should be understood not only as technological innovations in digital payments but also as strategic instruments with implications for monetary sovereignty and global economic influence. Their long-term impact on cross-border payment systems will depend on the development of interoperable standards, coordinated regulatory frameworks, and sustained international cooperation. By bringing together fragmented strands of research, this study contributes to a more comprehensive understanding of how CBDCs are reshaping both digital payment infrastructures and the broader global financial order. Full article

Background: Open banking (OB) is rapidly transforming financial ecosystems by enabling controlled data sharing among multiple actors through application programming interfaces (APIs). While this transformation promises innovation and competition, it also introduces complex security challenges that extend beyond purely technical considerations. Despite growing attention in academic and professional domains, existing reviews provide limited integration of security concerns with global adoption patterns and cross regional variation. Methods: This systematic review analyses empirical and conceptual research on security in OB published between 1999 and 2025, capturing early digital banking studies that later informed the development of OB. The literature is structured into three distinct phases: foundational digital banking developments, regulatory formalisation of OB frameworks, and post-implementation expansion of OB ecosystems. A comprehensive search was conducted across major academic databases and scholarly portals, complemented by relevant regulatory and policy sources. Following duplicate removal, title and abstract screening, full-text eligibility assessment, and methodological quality appraisal, 117 studies were retained for qualitative synthesis. Results: The findings reveal recurring security challenges arising from the interaction between technological infrastructures, regulatory frameworks, and user behaviour within OB ecosystems. Technical safeguards such as APIs, strong customer authentication, and encryption are necessary but insufficient when they are misaligned with regulatory implementation and user behaviour. Behavioural factors, including trust, consent understanding, and security-related decision making, play a central role in shaping ecosystem resilience. Based on this synthesis, the study develops a tri-dimensional security framework integrating technological, regulatory, and behavioural dimensions. The bibliometric analysis of 117 studies reveals that technological security dominates the literature (58%), followed by regulatory governance (44%) and behavioural dimensions (42%). However, only 17.9% of studies integrate all three dimensions simultaneously. APIs and authentication mechanisms represent the most frequent technological terms, while PSD2 and GDPR dominate regulatory discourse. Trust and decision-making are the most recurrent behavioural constructs. The relatively low proportion of fully integrated studies confirms a structural fragmentation within OB security research, thereby empirically justifying the proposed tri-dimensional framework. Chronologically, early studies (1999–2015) predominantly focused on technical security mechanisms and regulatory compliance, whereas more recent research (2020–2025) increasingly highlights the interplay between regulatory frameworks and user behaviour, suggesting a shift towards a more holistic understanding of security within OB adoption. Conclusions: This systematic review concludes that integrating technological, regulatory, and behavioural perspectives advances a more comprehensive understanding of security in OB ecosystems. The proposed tri-dimensional security framework provides a structured foundation for future research and supports policy-relevant and practice-oriented security design. Full article

The Digital Elevation Model (DEM), a crucial data source for waterlogging simulations, significantly influences the accuracy of the results. In complex urban environments, low-resolution DEMs cannot accurately capture the depressional characteristics of city roads or water levels during river floods, leading to distorted urban flooding simulations. To this end, this study developed a novel technique to refine the public 30 m resolution DEM to 1 m resolution for the urban area. The method establishes a zero-flood-depth baseline by correcting the elevations of key elements to improve the accuracy of urban inundation simulations. This is achieved through a semi-automated vector–raster integration workflow, which includes (1) road elevation correction that classifies road vectors, samples elevation at end points, and applies linear interpolation to depict roads as depressions and (2) waterway elevation correction that raises riverbed levels to match adjacent banks, simulating a pre-flood critical state. Polk County in Florida, USA, and the Central Business District (CBD) in Beijing, China, were selected as the research areas. In Polk County, we directly verified its accuracy using the official 1m LiDAR DEM. The results show that the mean error (ME), the root mean square error (RMSE), and the Standard Deviation (SD) improved by approximately 9%, 20%, and 65%, respectively, compared with previous methods. In Beijing, we used a volume matching algorithm to simulate urban flood depths under different rainfall scenarios, indirectly validating the results by comparing the simulated inundation volumes with the theoretical rainfall amounts. The refinement of the DEM significantly improved the topological accuracy of the river channels and the reliability of flood depths, and we analyzed two types of water accumulation behavior patterns. Overall, this study innovatively integrates public raster and vector data, utilizing known attribute information to refine public datasets and construct a highly precise water accumulation model. Full article

The introduction of central bank digital currencies (“CBDCs”)—notably the digital euro—stands to reshape the financial system’s structure. This study initially conducts a comparative analysis of household deposit outflow across the Eurozone, the United Kingdom, Canada, and China, before focusing specifically on the potential outflow from covered deposits protected by Deposit Guarantee Schemes (“DGSs”) in the first jurisdiction. The originality of our contribution lies in proposing a formula that calculates household deposit outflow while incorporating two weighting coefficients—both consistent with the literature: one to estimate the propensity to adopt digital instruments based on age clusters (which decreases with advancing age), and another to reflect the extent of digital currency adoption (which likewise decreases with age). The findings suggest that both the calibration of the holding limit and the demographic composition of the population exert a substantial influence on the potential outflow of household deposits and covered deposits, with implications for DGSs. Overall, the digital euro can enhance banking system efficiency and competitiveness, but requires a design balancing innovation, deposit stability, and depositor protection for banks of all sizes. Full article

Cryptocurrencies are widely recognised for catalysing distributed ledger technologies and tokenisation, innovations that are transforming payment systems globally. However, their role as money is often contested and the subject of intense academic and policy debate. Nevertheless, new taxonomies of money allocate a unique place for cryptocurrencies. Described based upon a few high-level features, cryptocurrencies, except for stablecoins, are assumed to be a uniform group that can indeed be studied and categorised as such. Moreover, the logic of their creation is often looked at from a broad decentralisation and disintermediation perspective and remains ambiguous and questionable at best. This paper reports the findings of a clinical investigation into the top 30 cryptocurrencies representing 95.5% of the total crypto market capitalisation. This study is primarily concerned with their logic of creation, and how they compare with that of fiat money and central bank digital currencies. The findings reveal that, unlike fiat money, and CBDCs, crypto mechanics depict a diverse assortment of logics. The evidence suggests that despite widespread technical innovations, the crypto ambition to provide an alternative to centrally controlled debt-based fiat money has managed to add a combination of transaction validation, mathematical guesswork, pseudo-randomness, and size dependent probability as alternative logics of creation and allocation. While centrally managed bank-controlled debt-based fiat money leaves a lot to be desired, protocol-managed, code-controlled, size-dependent probabilistic money does not seem like much of an upgrade. This paper addresses the limits of tokenisation as a transformational tool and argues that cryptocurrencies may have helped trigger improvements in the technology of money, but not in its logic of creation. Indeed, to compete in the emerging monetary landscape it has helped create, i.e., the ubiquitous tokenisation of debt and debt-based fiat money, the crypto revolution will have to extend its value proposition beyond technology and pseudo-randomness. Full article

CBAM is reshaping the external conditions under which open economies pursue decarbonization, raising new questions about how domestic carbon pricing can remain effective while supporting sustainability. We develop an environmental DSGE model for a small open economy with a cleaner green sector and an emissions-intensive brown sector, an endogenous green innovation margin, and a banking sector that prices sector-specific transition risk through credit spreads. Carbon pricing affects the economy through relative prices and resource reallocation, while CBAM acts as an export-revenue wedge that weakens cash flows in exposed activities and tightens financing conditions. In the baseline, a coordinated increase in the domestic effective carbon price cuts emissions quickly and shifts investment toward the green sector, with aggregate activity recovering as reallocation proceeds. Under CBAM, the near-term contraction is deeper, and the spread spikes more, but endogenous green innovation and a policy mix that combines targeted green credit support with macroprudential measures deliver a smoother adjustment and the largest welfare gains. The results suggest that coherent policy packages linking carbon pricing, innovation support, and financial stability are central to managing the transition in an open economy. Full article

This paper examines the European Central Bank’s institutional capacity and readiness to introduce a digital euro in the context of accelerating digitalization, geopolitical uncertainty, and growing competition in the global monetary system. Rather than treating the digital euro primarily as a technological innovation, the study conceptualizes it as a multidimensional institutional project shaped by regulatory mandates, governance choices, stakeholder expectations and risk considerations. Drawing on institutional theory and stakeholder theory, the analysis adopts a qualitative research design combining semi-structured expert interviews with systematic document analysis of ECB and EU policy material. The findings indicate that while the ECB has developed a structured roadmap encompassing investigation, preparation and potential issuance phases, significant challenges remain across regulative, normative and cognitive dimensions of readiness. These challenges include tensions between privacy and compliance requirements, cybersecurity and interoperability risks, potential effects on financial stability, and the management of public trust and stakeholder acceptance. The paper argues that the success of a digital euro will depend not only on technical feasibility, but on the ECB’s ability to align design and implementation choices with institutional legitimacy and behavioral expectations. By integrating institutional readiness and risk analysis, the study contributes to the literature on central bank digital currencies and offers insights relevant to policymakers concerned with monetary sovereignty and financial resilience in the digital age. Full article

From adaptation to building effective resilience to climate change is critical for transforming West and Central Africa (WCA) agricultural system. Climate-Smart Agriculture (CSA) is an approach initiated by leading international organizations to ensure food security, increased adaptation to climate change and mitigation. Its application spans from innovative policies, practices, technologies, innovations and financing. However, CSA initiatives lack scientific-based assessment prior to implementation to ensure their effectiveness. To fill this gap, future interventions should not only be assessed using rigorous methodology but should also be built on lessons learned from previous initiatives. Although there are a lot of climate related agricultural initiatives in WCA, most of them have not been analyzed through a CSA lens and criteria to capitalize on their experiences to improve future interventions. In this study we mapped previous climate-related initiatives in WCA, highlighted their gaps and lessons learned to accelerate the implementation of CSA in the region. The study covered 20 countries in WCA: Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Chad, Côte d’Ivoire, Congo, Gabon, Gambia, Ghana, Guinea, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, Togo. CSA initiatives were reviewed using a three-steps methodology: (i) national data collection, (ii) regional validation of the national database, (iii) data analysis including spatial mapping. Data was collected from the websites of international, regional and national organizations working in the field of agricultural development in the region. Each initiative was analyzed using a multicriteria analysis based on CSA principles. A total of 1629 CSA related initiatives were identified in WCA. Over 75% of them were in the form of projects/programs with more of a focus on the first CSA pillar (productivity and food security), followed by adaptation. The mitigation pillar is less covered by the initiatives. Animal production, fisheries, access to markets, and energy are poorly included. More than half of these initiatives have already been completed, calling for more new initiatives in the region. Women benefit very little from the implementation of the identified CSA initiatives, despite the substantial role they play in agriculture. CSA initiatives mainly received funding from technical and financial partners and development partners (45%), banks (22%), and international climate financing mechanisms (20%). Most of them were implemented by government institutions (48%) and development partners (23%). In total, more than 600 billion EUR have been disbursed to implement 83 of the 1629 initiatives identified. These initiatives contributed to reclaiming and/or rehabilitating almost 2 million ha of agricultural land in all countries between 2015 and 2025. Future initiatives should ensure the consideration of the three CSA pillars right from their formulation to the implementation. These initiatives should consider investing in mixed production systems like crop-animal-fisheries. Activities should be built around CSA innovation platforms to encourage networking among actors for more sustainability. Full article

Green fintech merges sustainable finance with data-intensive innovation, but national translations of EU rules can create regulatory risk. This study examines how such risk manifests in Central Europe and which policy tools mitigate it. We develop a three-dimension framework—regulatory clarity and scope, supervisory consistency, and innovation facilitation—and apply a comparative qualitative design to Hungary, Slovakia, Czechia, and Poland. Using a common EU baseline, we compile coded national snapshots from primary legal texts, supervisory documents, and recent scholarship. Results show material cross-country variation in labelling practice, soft-law use, and testing infrastructure: Hungary combines central-bank green programmes with an innovation hub/sandbox; Slovakia aligns with ESMA and runs hub/sandbox, though the green-fintech pipeline is nascent; Czechia applies a principles-based safe harbour and lacks a national sandbox; and Poland relies on a virtual sandbox and binding interpretations with limited soft law. These choices shape approval timelines, retail penetration, and cross-border portability of green-labelled products. We conclude with a policy toolkit: labelling convergence or explicit safe harbours, a cross-border sandbox federation, ESRS/ESAP-ready proportionate disclosures, consolidation of recurring interpretations into soft law, investment in suptech for green-claims analytics, and inclusion metrics in sandbox selection. Full article

The rapid digital transformation of the financial sector has driven supervisory authorities to develop new tools for engaging with fintech innovation. Among these, Innovation Hubs have become essential mechanisms for improving regulatory dialogue, interpretive clarity, and institutional learning. This article examines the Romanian Fintech Innovation Hub (FIH), launched by the National Bank of Romania (NBR) as a consultative platform to support fintech and payment service providers operating within complex legal environments. Using a qualitative, single-case methodology (2019–2023), the study draws on internal NBR documentation, anonymized supervisory materials, and interviews with fintech founders, oversight officers, and policy specialists. The analysis evaluates the Hub’s performance across five key dimensions: stakeholder engagement, regulatory learning, policy calibration, innovation barriers, and institutional reflexivity. Findings reveal that while the Hub strengthened supervisory understanding and enhanced trust-based interaction, its influence on rulemaking and market access was limited by structural and procedural constraints, including resource gaps and the absence of a regulatory sandbox function. Nonetheless, the Romanian experience demonstrates how institutional learning can emerge even in bank-dominated markets, generating internal adaptation and improving fintech compliance readiness. Comparative insights from Hungary and Italy highlight the advantages of modular, risk-proportionate engagement models that integrate advisory and testing functions. The study contributes to the theory of adaptive regulation by proposing that innovation hubs function as feedback loop mechanisms linking market experimentation with supervisory evolution, offering a replicable model for small and emerging financial systems seeking to balance innovation facilitation with prudential soundness and legal certainty. As such, it provides generalizable insights for central banks and government policymakers on developing FinTech hubs that balance innovation facilitation with prudential soundness and legal certainty. Full article

This research study addresses the critical contradiction within global food systems: unsustainable consumption patterns and persistent food insecurity coexist and are exacerbated by food waste, which deepens socioeconomic inequalities and generates negative environmental externalities. In this scenario, higher education plays a central role in adopting comprehensive strategic frameworks to develop specialized human capital and influence society. This study analyzes a Service Learning model that integrates the CFS-IRA Principles to promote the SDGs and ensure responsible consumption. Based on a case study of the Food Bank Chair spanning 10 years and 212 projects, the implementation of this model was evaluated using the Working with People (WWP) method, which combines the development of postgraduate students’ skills with community service to address social problems. The results demonstrated the effectiveness of the SL-WWP model in strengthening students’ technical, social, and ethical competencies while reducing food waste. The evaluation showed strong alignment with key SDGs, with outstanding performance in governance, although the need to strengthen environmental and social criteria was identified. The originality lies in integrating the CFS-IRA Principles into an SL model that encourages innovative cooperation among universities, civil society, and public–private sectors, offering a replicable proposal for higher education institutions to establish themselves as agents of change towards sustainability. Full article

Monetary policy and central banks faced significant challenges in recent decades, like the Great Recession and the 2008–2009 financial crisis, and the Global Inflation Surge of 2021–2022. The introduction of blockchain technology triggered major financial innovations. Nevertheless, the adoption of digital currencies and stablecoins in particular has been limited and does not have wide and everyday use, like national currencies. To understand non-national currency usage better, we examine free banking in Scotland and the U.S., and specifically note issuance. Lessons from these periods suggest the importance of reserves and coordination mechanisms. Based on these free banking cases, we propose that banks and corporations should have the freedom to issue their own stablecoins. More specifically, we examine the freedom for regulated banks to issue their own stablecoins in a competitive environment, learning from historical precedents how to manage such a system. Free banking stablecoins could provide significant benefits, especially in countries with unstable monetary systems, like emerging economies. Such benefits can range from better monetary policy, inflation targeting, and stability, to a broader range of innovative financial markets and services that can contribute towards entrepreneurship, investments, and economic development. Citizens, entrepreneurs, and domestic and foreign investors can gain from these benefits. At the same time, the banking sector and financial institutions can maintain an important role and further expand and develop by offering innovative financial services in an evolving and challenging environment due to financial technology and disintermediation. Finally, governments and central banks could also benefit from increased financial inclusion, higher economic growth and development, but also from more competition and financial stability, and from financial innovation and technology services. Full article

Small and medium-sized enterprises (SMEs) are critical contributors to economic growth, innovation, and employment. However, they often struggle in securing external financing. This financial gap mainly arises from perceived risks and information asymmetries creating barriers between SMEs and potential investors. To address this issue, our study proposes a machine learning (ML) framework for predicting the investment readiness (IR) of SMEs. All the models involved in this study are trained using data provided by the European Central Bank’s Survey on Access to Finance of Enterprises (SAFE). We train, evaluate, and compare the predictive performance of nine (9) machine learning algorithms and various ensemble methods. The results provide evidence on the ability of ML algorithms in identifying investment-ready SMEs in a heavily imbalanced and noisy dataset. In particular, the Gradient Boosting algorithm achieves a balanced accuracy of 75.4% and the highest ROC AUC score at 0.815. Employing a relevant cost function economically enhances these results. The approach can offer specific inference to policymakers seeking to design targeted interventions and can provide investors with data-driven methods for identifying promising SMEs. Full article

The introduction of mobile banking is essential in today’s financial sector, where technological innovation plays a critical role. To remain competitive in the current market, businesses must analyze client attitudes and perspectives, as these influence long-term demand and overall profitability. While previous studies have explored general adoption behaviors, limited research has examined how individual factors such as social influence, lifestyle compatibility, financial technology self-efficacy, and perceived usage cost affect mobile banking adoption among specific generational cohorts. This study addresses that gap by offering insights into these variables, contributing to the growing literature on mobile banking adoption, and presenting actionable recommendations for financial institutions targeting younger market segments. Using a structured questionnaire survey, data were collected from both users and non-users of mobile banking among the Gen Z population in the United States. The regression model significantly predicts mobile banking adoption, with an intercept of $-0.548$ ($p < 0.001$). Among the independent variables, perceived cost of usage has the strongest positive effect on adoption ($B=0.857$, $\beta =0.722$, $p < 0.001$), suggesting that adoption increases when mobile banking is perceived as more affordable. Social influence also has a significant positive impact ($B=0.642$, $\beta =0.643$, $p < 0.001$), indicating that peer influence is a central driver of adoption decisions. However, self-efficacy shows a significant negative relationship ($B=-0.343$, $\beta =-0.339$, $p < 0.001$), and lifestyle compatibility was found to be statistically insignificant ($p=0.615$). These findings suggest that reducing perceived costs, through lower fees, data bundling, or clearer communication about affordability, can directly enhance adoption among Gen Z consumers. Furthermore, leveraging peer influence via referral rewards, Partnerships with influencers, and in-app social features can increase user adoption. Since digital self-efficacy presents a barrier for some, banks should prioritize simplifying user interfaces and offering guided assistance, such as tutorials or chat-based support. Future research may employ longitudinal designs or analyze real-life transaction data for a more objective understanding of behavior. Additional variables like trust, perceived risk, and regulatory policies, not included in this study, should be integrated into future models to offer a more comprehensive analysis. Full article

Despite the importance of financial literacy, particularly in sustaining and improving rural agriculture, it is documented in the literature that little is known about financial literacy, particularly in rural communities in developing countries. Responding to the calls for research to address this gap, the current study investigates how financial literacy relates to access to funding, innovative service adoption, and sustainable food production among agricultural food producers in Nigeria’s rural communities. A probability sampling technique was used to draw 460 samples from registered rural farmers in the Central Bank of Nigeria’s Anchored Borrower’s Programme for food production in Edo State, Nigeria. Quantitative data were collected using a structured questionnaire. The hypotheses were tested using regression analysis, while descriptive statistics were deployed to analyse the demographic data of the respondents. The outcomes suggest that financial literacy has significant links with access to funding, innovative service adoption and sustainable food production among agricultural food producers in Nigerian rural communities. Based on the outcomes, it is concluded that financial literacy significantly influences sustainable food production in Nigerian rural communities. As such, there is a need for the Nigerian government and financial authorities to embark on a financial literacy drive to increase financial literacy, particularly in light of ever-evolving disruptive financial technologies. Full article