Fintech has the potential to change financial intermediation structures substantially. It could disrupt existing financial intermediation with new business models empowered by intelligent algorithms, big data, cloud computing and artificial intelligence. Policymakers need to consider four questions urgently: Develop a European or national fintech market? What regulatory framework to pursue? Should supervision of fintech be exercised at the European level? What is the overall vision for the EU’s financial system?
While the activities using the peer-to-peer cryptocurrency Bitcoin swing between legal and illegal, the attention has been increasingly shifting to the technology underlying Bitcoin, known as blockchain. The mechanics and economics of Bitcoin have been reviewed in a previous Bruegel blogpost. In this blog review we explain, or at least attempt to, what blockchain is and whether it contains the extraordinary innovation potential that its proponents believe it to have, or perhaps such hype is oversold.
The digital transformation has already had an impact on policymaking, and this trend will continue in the years to come. How will the political process change and how can influencers guide this change?
This Blueprint offers an in-depth analysis of inequalities of income and wealth in the EU, as well as their causes and consequences. How evenly are the benefits of growth distributed in our economies, and what does this mean for fairness and social mobility? How could and should policymakers react?
The ‘internet of things’ will bring major changes in many areas of life, including the political arena. What will be the new communication tools, strategies and narratives for policymakers?
Consumers enjoy the cheaper taxi services provided by Uber, but the company has proven divisive among taxi drivers. Regulators should allow Uber to operate, but under stricter regulations, to ensure that consumers reap the benefits, and drivers operate on a level playing field.
The sharing economy allows individuals to access goods and services coordinated by online communities such as Uber and Airbnb. The emergence of sharing platforms in Indonesia is having an observable impact, but what are the technical hurdles faced by sharing economy firms?
Lending Club has captured the attention this week as it became listed on Thursday on the NY Stock Exchange and its share spiked nearly 70% in trading debut. While the growth of marketplace lenders has been exponential over the past few years, questions remain as to whether P2P lenders will manage to move beyond the niche of middle-class credit card borrowers and will be able shoulder the next recession.
The following graph shows the individual index of Google searches for "Uber" and the index of searches for "Taxi", both in Germany. Uber is benefiting from the opposition of taxi drivers and attempts to suppress it.
Uber, the innovative ridesharing service, has recently generated a lot of anger from the taxi industry because it enabled market entry for many private drivers. In this fight taxis are indeed disadvantaged by strict industry regulation and need for licenses. Dealing with this issue is a major task for regulators. Another challenge for regulators is to create efficient regulation that takes into account the features of “sharing” economy.