Bank of Finland Conference on Money in the Digital Age on 12-13 June 2018

Information and communication technologies have affected financial services for decades. More recently, digitization of information has increasingly spread to almost all areas of human activity, creating new vast pools of data. This has opened new opportunities also to financial services, which both incumbent institutions and new players are facing. Great benefits may be available, but new risks may also emerge. New technologies and players may eventually increase competition and innovation which may lead to better and cheaper financial services to the end users.

However, it is not clear that welfare benefits can be maximized without policy interventions. Financial regulation and supervision – even competition policies - can be a catalyst, but may be needed also for safeguarding the financial system against new types of risks. Central banks may also be affected as ways of payment and use of cash are changing. The issue of digital central bank currencies has risen, with potential implications for financial stability and the transmission of monetary policy.


12-13 June 2018, Bank of Finland Auditorium, Rauhankatu 19

Day 1, Tuesday 12 June

8:30–9:00 Registration

Welcome and introduction, Governor Erkki Liikanen, Bank of Finland

Keynote speech, Prof. Bengt Holmström, Massachusetts Institute of Technology

10:00–10:30 Refreshments

Session 1: Theory of Money I

Chair: Tuomas Takalo

Implicit Fiscal Guarantee for Monetary Stability by Gaetano Gaballo and Eric Mengus, discussant Guido Ascari

Partners or Strangers? Cooperation, monetary trade, and the choice  of scale of interaction by Maria Bigoni, Gabriele Camera and Marco Casari, discussant Diego Moreno

12:00–13:30 Lunch

Session 2: Financial (dis)intermediation

Chair: Katja Taipalus

P2P Lending: Information Externalities, Social Networks and Loans' Substitution by Monica Paiella and Ester Faia, discussant Linda Schilling

TechFin at Ant Financial: Credit Market Completion and its Growth Effect by Harald Hau, Yi Huang, Hongzhe Shan and Zixia Sheng, discussant Vesa Pursiainen

  • Presentation [coming soon]
  • Paper [not available]



Session 3: Blockchains and cryptocurrencies I

Chair: Adam Gulan

Monopoly without a Monopolist: An Economic Analysis of the Bitcoin Payment System by Gur Huberman, Jacob Leshno and Ciamac Moalleni, discussant Thomas Noe

Some simple Bitcoin economics by Linda Schilling and Harald Uhlig, discussant Alex Cukierman

18:00 –21:00

Social Dinner


Day 2, Wednesday 13 June


Keynote speech, Hyun Song Shin, Bank for International Settlements

Chair: Seppo Honkapohja

10:00–10:30 Refreshments

Session 4: Blockchains and cryptocurrencies II

Chair: Aleksi Grym

The Blockchain Folk Theorem by Bruno Biais, Christophe Bisière, Matthieu Bouvard and Catherine Casamatta, discussant Julien Prat

Financial incentives for open source development: the case of Blockchain by Andrea Canidio, discussant Alistair Milne

12:00–13:30 Lunch

Session 5: Theory of Money II

Chair: Eleonora Granziera

A Framework for Analyzing Monetary Policy in an Economy with E-money by Scott Hendry and Yu Zhu, discussant Hannu Vartiainen

  • Presentation [not available]
  • Paper [not available]

Digitization and Demonetization in a Shadow Economy Model by Ayushi Bajaj and Nikhil Damodaran, discussant Makoto Watanabe

15:00–15:30 Refreshments

Session 6: Money Markets

Chair: Esa Jokivuolle

Liability Structure and Risk-Taking: Evidence from the Money Market Fund Industry by Ramin Baghai, Mariassunta Giannetti and Ivika Jäger, discussant Otto Toivanen

The Interbank Market Puzzle by Franklin Allen, Xian Gu and Oskar Kowalewski, discussant Zuzana Fungacova

17:00 –17:15    Closure