Digital Finance and the Future of the Global Financial System

This  book offers an in-depth analysis of the most salient features of  contemporary financial systems and clarifies the major strategic issues  facing the development of digital finance. It provides insight into how  the digital finance system actually works in a socioeconomic context. It  presents three key messages: that digital transformation will change  the financial system entirely, that the State has a particularly  important role to play in the whole process and that consumers will be  offered more opportunities and freedom but simultaneously will be  exposed to more risk and challenges.

The book is  divided into four parts. It begins by laying down the fundamentals of  the subsequent analysis and offers a deep understanding of digital  finance, including a topology of the key technologies applied in the  transformation process. The next part reviews the challenges facing the  digital State in the new reality, the digitalization of public finance  and the development of digitally relevant taxation systems. In the third  part, digital consumer aspects are discussed. The final part examines  the risks and challenges of digital finance. The authors focus their  attention on three key developments in financial markets: accelerated  growth in terms of the importance of algorithms, replacing existing  legal regulations; the expansion of cyber risk and its growing impact  and finally the emergence of new dimensions of systemic risk as a side  effect of financial digitalization. The authors supplement the analysis  with a discussion of how these new risks and challenges are monitored  and mitigated by financial supervision.

The book is a  useful, accessible guide to students and researchers of finance,  finance and technology, regulations and compliance in finance.