As we refine our monetary operations, we also recognize that fintech has the potential to alter how central banks conduct monetary policy. Digitalization of the payments system, adoption of new forms of electronic payments and stores of value, and the issuance of digital currency fundamentally affect money demand.
The key question is “What should be the optimum design of financial market regulation and supervision?” There is no easy answer to this question. However, there are some criteria we can list. 1. Supervision should be risk-oriented. 2. Priority should be given to principle-based rules over detailed regulations for every specific case. 3.