• Research

    The Center for Financial Markets and Policy, in partnership with the Chamber of Digital Commerce, have released a white paper titled 'Blockchain and Financial Inclusion, The Role Blockchain Technology Can Play in Accelerating Financial Inclusion.'


    The paper explores some of the obstacles to providing financial services to those who lack access or are underserved. We explore how 3 companies are using blockchain to overcome these obstacles to provide affordable and easy to use financial services. We compare how the companies have used the technology to reduce the friction of transferring value and made cross border and internal payments more efficient.


    The paper also focuses on the regulatory landscape for blockchain and the different regulatory approaches to the technology. The study particularly examines regulation in three countries India, Kenya, and the Philippines. For example, in the Phillipines they have a regulatory sandbox and are adopting a test and learn approach while in Kenya they have issued circulars advising individuals against transacting in virtual currencies. We show how beneficial it can be to engage early on and how using blockchain could reduce risks.


    The research was conducted by Charels Gallo, Anna Jumamil and Pak Aranyawat, second year MBA students at the McDonough School of Business at Georgetown University. The white paper was officailly released earler this morning at the 2017 Blockchain Summit held on Georgetown's campus in Washington D.C.

    A student-led research white paper on 'The Complex Regulatory Landscape for FinTech An Uncertain Future for Small and Medium-Sized Enterprise Lending' was published by the World Economic Forum and featured in Real Clear Markets.


    The paper outlines the regulatory hurdles marketplace lenders (MPLs) - any non-bank entity that provides money to individuals or businesses through online services – face in three of the world’s largest FinTech markets. The United States, the United Kingdom, and China have all taken different approaches to regulating marketplace lenders, despite the inherently borderless nature of the FinTech industry. For example, in the U.S., consumer and business lending are regulated by Consumer Financial Protection Bureau (CFPB) and Securities and Exchange Commission (SEC) respectively, while in the UK, it is the Financial Conduct Authority (FCA) which now regulates the consumer credit. On the other hand, in China, the platforms were until recently un-supervised. The China Banking Regulatory Commission (CBRC) now regulates the industry by treating the platforms as “infomediaries” and does not allow them to assess a borrower’s creditworthiness. Some other countries do not even have a regulatory body responsible for marketplace lending.


    The paper also focuses on the impact these regulations may have on SMEs, which are some of the main beneficiaries of the FinTech movement. FinTech is increasingly viewed as a potential solution for the credit gap that SMEs often face around the world, raising questions about how to lend to small businesses that often exist in challenging environments.

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