Market Power and Financial Risk in U.S. Payments Systems: A Conversation Joshua C. Macey
Episode Description
Co-directors Peter Conti-Brown moderated a discussion with University of Chicago Law School's Joshua C. Macey on his new Wharton Initiative on Financial Policy and Regulation (WIFPR) white paper, “Market Power and Financial Risk in U.S. Payments Systems.” The panelists talk about the U.S. payments system. ----- The Wharton School of the University of Pennsylvania is committed to sharing its intellectual capital through Knowledge at Wharton, the school’s online business analysis journal.
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Brief Summary
Josh Macy discusses financial stability, investment, and competition in U.S. payment systems, highlighting regulatory challenges and future implications.
Key points
- Market Power and Financial Risk. Josh Macy discusses the intersection of market power and financial risk in payment systems.
- The Regulatory Dilemma. Exploring the trade-offs between stability, investment, and access in payment systems.
- The Trilemma of Payment Systems. Exploring the balance between stability and competition in payment systems.
- Government Control in Payments. Discussing the implications of government control versus private sector innovation.
- Central Bank Digital Currency Skepticism. Evaluating the potential impact of Central Bank digital currencies on payment systems.
- Regulatory Challenges Ahead. Exploring the need for regulatory frameworks as financial activities move into non-bank sectors.
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Episode highlights
- Market Power and Financial RiskJosh Macy discusses the intersection of market power and financial risk in payment systems.“His expertise becomes incredibly relevant when we’re talking about stability and structure.”1:32Nov 28, 2022
- The Regulatory DilemmaExploring the trade-offs between stability, investment, and access in payment systems.“This gives rise to hard and potentially intractable trade-offs for policymakers.”6:50Nov 28, 2022
- The Trilemma of Payment SystemsExploring the balance between stability and competition in payment systems.“It's always tempting to go back to that kind of framework.”22:11Nov 28, 2022
- Government Control in PaymentsDiscussing the implications of government control versus private sector innovation.“I think more government control shouldn't be surprising.”30:02Nov 28, 2022
- Central Bank Digital Currency SkepticismEvaluating the potential impact of Central Bank digital currencies on payment systems.“I'm not convinced the rollout has been successful.”35:03Nov 28, 2022
- Regulatory Challenges AheadExploring the need for regulatory frameworks as financial activities move into non-bank sectors.“We’re dealing with such questions all the time as banks move into non-banks.”47:50Nov 28, 2022
- The Future of Financial RegulationDebating how to handle the regulatory perimeter in the context of new financial entities.“My concern is expanding the bank regulatory perimeter now.”48:06Nov 28, 2022
- The Risks of Payment SystemsDiscussing the insolvency risks of payment systems like PayPal and Venmo, and the implications for users.“If people leave money in a retail payments provider, it could become highly problematic.”52:39Nov 28, 2022
