iiinova — where your digital self keeps evolving

We must prepare our financial system for quantum threats. A new paper shows how: www.bis.org/publ/bppdf/b... #Quantumcomputing poses a significant risk to global financial stability. This joint work with Donna Dodson, Angela Dupont, Maryam Haghighi, Nicolas Margaine, ... (1/3)

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2. Strategic planning: cryptographic agility, phased migration, and hybrid models 3. Pragmatism: focus on existing solutions rather than hypothetical ones, as well as, on implementation complexities and infrastructure challenges. #CyberSecurity #FinancialServices #QuantumSafe (3/3)

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Danica Marsden, Sarah McCarthy and Andras Valko sets out a framework for the transition to quantum-safe cryptography, emphasizing: 1. Immediate action: awareness and cryptographic inventory ... (2/3)

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Raphael Auer @raphauer.bsky.social · 15/05/2025

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How economically significant is decentralized finance (#DeFi)? www.bis.org/publ/work126... Total Value Locked (#TVL) aims to capture the size of any ecosystem by summing up the funds that are locked in a given ecosystem, much like the liability side of a bank’s balance sheet. However...

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Raphael Auer @raphauer.bsky.social · 15/05/2025

... #TVL can be inflated due to double-counting and reliance on off-chain data. We hence introduce Verifiable TVL, a more transparent and reproducible approach to measuring DeFi’s scale: www.bis.org/publ/work126... This is joint w Pietro Saggese, Stefan Kitzler, Michael F., Bernhard Haslhofer.

bis.org

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Raphael Auer @raphauer.bsky.social · 15/05/2025

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Kevin Werbach @kwerb.com · 09/05/2025

Here's a new report from the Bank for International Settlements, showing the reality of digital assets with actual data. Yes, most activity is pure speculation. BUT, there is legitimate transactional cross-border usage of stablecoins. www.bis.org/publ/work126...

bis.org

DeFiying gravity? An empirical analysis of cross-border Bitcoin, Ether and stablecoin flows

We investigate trends and drivers of cross-border flows of the two major native cryptoassets (Bitcoin and Ether) and the two major asset-backed stablecoins (Tether and USD Coin) between 184 countries ...

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Reposted by Raphael Auer

New data shows #Stablecoins are quietly emerging as a global transactional means and reshaping remittance flows. Happy to share "DeFiying Gravity? An Empirical Analysis of Cross-Border Bitcoin, Ether and Stablecoin Flows," with Ulf Lewrick and Jan Paulick: www.bis.org/publ/work126... We...

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Bitcoin and Ether remain predominantly speculative, influenced by global market volatility.

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analyze a novel and extensive crypto transaction dataset across 184 countries and the four major crypto assets (USDT, USDC, #Ether, and #Bitcoin). We uncover substantial volumes but distinct roles: stablecoins serve transactional needs like remittances, while...

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Raphael Auer @raphauer.bsky.social · 02/05/2025

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Join the BIS Innovation Hub in Frankfurt, Paris, Hong Kong, London, Basel, Stockholm, Singapore, or Toronto. We have a number of secondment opportunities. Duration is typically 6-18 months. Find here more information on the job and how to apply: lde.tbe.taleo.net/lde01/ats/ca...

Raphael Auer @raphauer.bsky.social · 02/05/2025

Raphael Auer @raphauer.bsky.social · 27/04/2025

Reposted by Raphael Auer

I found this video by MIT Professor Andrej Karpathy really worth the time (3½ hours). A non-technical walkthrough on creating an LLM chatbot like ChatGPT. youtu.be/7xTGNNLPyMI?...

youtu.be

Deep Dive into LLMs like ChatGPT

YouTube video by Andrej Karpathy

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Raphael Auer @raphauer.bsky.social · 27/04/2025

I found this video by MIT Professor Andrej Karpathy really worth the time (3½ hours). A non-technical walkthrough on creating an LLM chatbot like ChatGPT. youtu.be/7xTGNNLPyMI?...

youtu.be

Deep Dive into LLMs like ChatGPT

YouTube video by Andrej Karpathy

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Raphael Auer @raphauer.bsky.social · 24/04/2025

Unlocking seamless, instant, and safe FX settlements - read our brand new report on Meridian FX connecting DL3S, the Trigger solution, and TIPS Hash-link to the UK RTGS system: www.bis.org/publ/othp94....

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Reposted by Raphael Auer

VoxEU @ CEPR @voxeu.org · 09/04/2025

@raphauer.bsky.social, Cyril Monnet, & Hyun Song Shin discover that the economic gains from decentralisation of monetary ledgers are far from self-evident. One must balance decentralisation, security, and scalability. cepr.org/voxeu/column... #EconSky

Distributed ledgers are the embodiment of the vision of a decentralised notion of money. The key idea is to harness a network of self-interested ‘validators’ to perform the record keeping role of trusted intermediaries that underpin our current monetary system. This column examines the economic trade-offs in designing such systems, focusing on the interplay between decentralisation, finality, and scalability. A well-designed decentralised system aligns the interests of market participants with ledger maintainers. However, replicating validation across numerous validators can be cost-effective only in low-trust environments.

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Reposted by Raphael Auer

Thomas Sampson @thomsampson.bsky.social · 03/04/2025

For no particular reason, it might be a good time to repost my Starter pack of academic economists who study international trade go.bsky.app/G3dqAYg

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Reposted by Raphael Auer

Raphael Auer @raphauer.bsky.social · 19/03/2025

Is there an economic case for decentralization? Below, some takeaways from a paper with Cyril Monnet and Hyun Shin, now available in the JFE: www.sciencedirect.com/science/arti... - Decentralization can provide benefits when validators are chosen from among the system’s users.... (1/3)

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Submission deadline for #CEBRA25 is tomorrow 20.03: www.cebra-events.org/call-for-pap...

Reposted by Raphael Auer

Raphael Auer @raphauer.bsky.social · 19/03/2025

Please share! We are happy to announce up to 4 Adviser positions (Secondment). The BIS Innovation Hub Eurosystem Centre invites applications for Project Lead, Data Engineer, Economist, and Data Scientist. These roles offer opportunities to (1/4)...

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Submission deadline for #CEBRA25 is tomorrow 20.03: www.cebra-events.org/call-for-pap...

until March 31th: igam.escb.eu/oamcontext/p... (Note that the above link only works from a Eurosystem PC)

igam.escb.eu

ECB IDP Broker

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BIS Innovation Hub Centre - Eurosystem

...found here: www.bis.org/about/bisih/... These are Secondment positions open to current Eurosystem employees only. Candidates will hold the title of Adviser at the BIS Innovation Hub and work in either Frankfurt or Paris. A relocation and cost of living top-up is provided. Apply here: ... 3/4

bis.org

BIS Innovation Hub centre – Eurosystem

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... join a great team and advance critical work in digital currencies, artificial intelligence, and financial technology through collaboration with the entire hashtag#Eurosystem and the global network of the BIS Innovation Hub. More information on our projects can be... 2/4

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Distributed ledgers and the governance of money

...becomes preferable when intertemporal incentives are weaker. - We demonstrate these results within a general framework encompassing anonymous or identified participants, permissioned or permissionless access, and monopolistic or competitive ledgers. www.sciencedirect.com/science/arti... (3/3)

sciencedirect.com

Distributed ledgers promise to enable the classical vision of money as a universal transaction record. But is it ever optimal to update a ledger throu…

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This link will take you to a page that’s not on LinkedIn

This aligns incentives between those using the system and those maintaining it. - Downsides include redundant validation costs and difficulties achieving consensus. - On balance, centralized updating is optimal when long-term rewards are substantial, whereas decentralization...(2/3)

lnkd.in

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