Dr. Fangzhou Lu received his Bachelor of Science from New York University, Stern School of Business in 2014, and Ph.D. from Massachusetts Institute of Technology (MIT) in 2020. His research interests are Fintech, Cryptocurrency, Behavioral Finance, Entrepreneurial Finance, Emerging Markets, and Household Finance. His research is forthcoming in academic journals such as the Journal of Financial Economics. He has presented his work at venues including the European Financial Association annual conference, the China Securities Regulatory Commission, People’s Bank of China, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange. He will be joining The Faculty of Business and Economics of The University of Hong Kong (HKU) this year.
Title: Government and Private-Sector Backed Digital Currencies in the Fintech Era
Abstract:
Ever since the creation of Bitcoin by Satoshi Nakamoto, there has been a booming growth of different digital currencies, both from the central banks and the private-sector. Tentative Central Bank Digital Currency (CBDC) such as PBOC’s Digital RMB and the Federal Reserve’s Digital Dollar, has the potential to completely replace paper currency in circulation. Digital currency is the key to unlocking a new world where Fintech is prevalent in everyday life. It will become a crucial medium of exchange when combining with new technologies such as the 5G network, Artificial Intelligence, and
Internet of Things. While there are many opportunities associated with digital currencies, the challenges are also real. There is a growing tension between private-sector and government backed digital currencies. There is the concern of privacy regarding government-backed digital currencies, and the concern of fraud associated with private-sector backed digital currencies. Regulatory uncertainty, cyber-attack, and scalability issues are also present for both kinds of digital currencies. Despite those challenges, the era of digital currency and Fintech is coming in one way or another.
