IMF Working Papers-The Dark Side of the Moon? Fintech and Financial Stability

December 8, 2023-Summary:
Rapid advances in digital technology are revolutionizing the financial landscape. The rise of fintech has the potential to make financial systems more efficient and competitive and broaden financial inclusion. With greater technological complexity, however, fintech also poses potential systemic risks.

In this paper, I use a novel dataset to trace the development of fintech (excluding cryptocurrencies) and empirically assess its impact on financial stability in a panel of 198 countries over the period 2012-2020. The analysis provides interesting insights into how fintech correlates with financial stability: (i) the impact magnitude and statistical significance of fintech depend on the type of instrument (digital lending vs. digital capital raising); (ii) the overall effect of all fintech instruments together turns out to be negative because of the overwhelming share of digital lending in total, albeit statistically insignificant; and (iii) while digital capital raising is estimated to have a positive effect on financial stability in advanced economies, its effect is negative in developing countries. Fintech is still small compared to traditional institutions, but rapidly expanding in riskier segments of the financial sector and creating new challenges for policymakers.

Infographic-G20 Inflation Tracker: July

September 4, 2025--Key Highlights:
Argentina and Turkey remain outliers, with inflation at 36.6% and 33.5%-the highest in the G20 despite some cooling.
The United States held steady at 2.7%, lower than expected even amid tariff pressures.
The United Kingdom saw inflation climb to 3.8%, running hotter than market forecasts.

How Stablecoins and Other Financial Innovations May Reshape the Global Economy

September 4, 2025--Policymakers will need to achieve a difficult balance between benefits and risks while safeguarding both individual consumers and financial stability
Three years ago, Finance & Development devoted a full issue to anticipating "The Money Revolution," driven by innovations in finance, such as crypto assets. That revolution is now unfolding.

Finance Changed, Risks Didn't

September 4, 2025--New technologies are rewiring liquidity, payments, and economic stability
More than 15 years after the global financial crisis,the banking and financial system looks safer. But it's also evolving in ways that are reshaping who provides liquidity,how money moves,and risks to economic and financial stability. As a result,the next shock may begin not in a bank,but in the new infrastructure underpinning the system.

Ondo Brings Over 100 Tokenized U.S. Stocks and ETFs Onchain, Starting on Ethereum

September 3, 2025--Ondo Global Markets offers 24/7 onchain exposure to U.S. stocks and ETFs
Over 100 U.S. securities are now available, with hundreds more coming
Available to qualifying global (non-U.S.) investors, making Ondo one of the largest gateways to U.S. markets for global investors