Economics Advisory offers advisory, speaking, seminars and analysis on international monetary affairs and emerging markets capital markets with a focus on crypto-instruments and blockchain-based monetary applications, the IMF, history of the international monetary system and emerging markets currencies and capital markets developments.
11 July 2019
Accenture released a new paper on central bank digital currencies (CBDC). CBDC is seen as an essential evolution of central bank money against the new requirements of increasing digitalisation, internationalisation and automation of payments. Central bank money is adjusting to stay future-proof. CBDC is a different format of central bank money and forms integral part of the monetary base. The innovation rests in CBDC being blockchain-enabled or tokenised money. CBDC is about greater diversification of the payments infrastructure, resilience and offering choice of using central bank money. It is an enabler of change and to establish a level playing field between conventional and new payment systems. Central banks face a historic opportunity to set a new standard for money. [...]
London School of Economics and Political Science, Institute of Global Affairs
19 June 2019
The success of digital currencies will likely depend on whether they can offer something existing currencies cannot. While the notion of digital currencies seems relatively novel, many have expanded on old monetary ideas for a winning formula. Economic history suggests that new currencies emerged largely in response to expanding settlement media and offering complementary usability. The paper reviews parallels between past monetary innovations and digital currencies including flexibility for paper currencies afforded by the gold standard and its international aspiration, the relevance of early international currencies like the eighteenth century Maria Theresa thaler, regional parallel currencies like the nineteenth century Vereinsmünzen and the SDR as an international asset. The paper aims to illustrate that looking at monetary history, the new currencies may be less controversial and the case for such currencies stronger than generally perceived.[...]
Bretton Woods Committee blog post to the Bretton Woods@75 initiative
27 April 2019
Financial technology seems set to have a major impact on monetary relations. Several central banks are contemplating to offer central bank issued digital currencies (CBDC) as a medium of exchange for blockchain-enabled or token-based financial ecosystems. CBDC offers properties that could make the use of central bank money significantly easier in particular in cross-border but also off-shore transactions. It could transform the attractiveness of using CBDC relative to conventional currencies and thus alter the propensity to hold central bank money by non-residents. CBDC may therefore help address one the long held grievances about the international monetary system, namely the dependence on a very narrow set of currencies to conduct and settle international transactions and contribute to needed diversification in the international monetary system.
UBS and RBWC Conference-Managing the soft landing of the global economy
Washington, D.C., 12 April 2019
[...] I will focus on an idea that was advanced by IMF Managing Director Christine Lagarde in 2017, namely to offer a digital SDR. Yesterday, at the IMF Seminar Money and Payments in the Digital Age, Lagarde asked if a digital SDR would be possible and one discussant responded that it could become functional within 12 to 24 months. At Accenture, I'm working on a number of projects and proposals that involve digitalising or tokenising central bank money. Hence, a tokenised SDR seems very much in line with an incipient new openness to give considerations to tokenising national currencies. But given the difficulties of amending the existing SDR, a new approach is needed. [...]
7 April 2019
The recent emergence of private digital currencies, like bitcoin, has been met with considerable criticism. Yet, recent rumours that a large social network may issue a digital currency seem to affirm that new types of currencies are in demand. A social network digital coin could propel the notion of private currencies to new levels. Economic theory seems supportive of the idea. Adoption of a social network coin would rest in large part on whether a social network would constitute an optimum currency area. If so, it could change the very architecture of money. [...]
LSE Institute of Global Affairs and Financial Markets Group Conference—Financial resilience and systemic risk
London, 31 January 2019
[...] In my brief remarks, I shall first highlight the case for new currencies. I shall then focus on blockchain-enabled digital currencies issued by central banks. I consider blockchain-based technologies to offer new properties critical to ensuring central bank currencies remain future-proof while laying the foundations for a new currency architecture. [...]
OMFIF Bulletin January 2019
London, 17 January 2018 with John Velissarios
Distributed ledger technology has made signifi cant advances over recent years, affi rming arguments that it is now beginning to challenge existing payments systems. DLT addresses ineffi ciencies and resiliency while allowing interoperability with existing and future payments systems. The case to implement this technology is among the strongest in cross-border payments, post-trade clearing and securities settlement. [...]
Bali and London, 14 October 2018
The impact of financial innovation on the functioning of the international economy has become an integral part of the multilateral policy agenda. The announcement at the IMF-World Bank Annual Meetings in Bali on 12-14 October of the Bali Fintech Agenda in combination with the IMF Managing Director's Global Policy Agenda indicate that fintech is set to play a more prominent role to address monetary policy and financial stability concerns. This reflects mounting dissatisfaction with prevailing international monetary relations. The positive role attributed to fintech may hint at a new readiness to integrate fintech in monetary and financial policies. [...]
IMF-World Bank 2018 Annual Meetings
Conference, Bali, 11 October 2018
[...] I shall focus on the international dimension of central bank issued digital currencies (CBDC) especially how CBDC could address one of the long standing grievances in the international economy, namely inadequate supply and distribution of international liquidity. CBDC could offer a new basis for international currency use and as such have a profound impact on international trade and investments. [...]
Strategic advisory work on monetary innovation, crypto-instruments and blockchain-based monetary applications and the international monetary system with a focus on public policies and the financial public sector.
Custom-made seminars on international monetary affairs and monetary history including on crypto-currencies, the International Monetary Fund, the gold standard, the Euro Area, emerging markets currencies. Seminars can be arranged in various formats including working dinners, classes, lectures, interviews.
Event and keynote addresses and panel discussions on crypto-instruments and international monetary themes.
International economics and monetary analysis and opinion
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Economics Advisory Ltd. is a London-based private limited company registered in England and Wales.
Ousmène Jacques Mandeng, Director, Economics Advisory Ltd, has worked more than 20 years in the financial sector and international organisations on international investment and economic policy analyses and now focuses on the linkages between financial innovation and monetary and payments developments. He is a Senior Advisor with Accenture in its Global Blockchain Technology Practice.
Ousmène was a Managing Director at Prudential Financial and UBS Investment Bank leading coverage of official financial institutions globally. He worked at the International Monetary Fund, last as Deputy Division Chief coordinating work on IMF lending policies and use of IMF resources and on Latin America including as a Resident Representative. He has commented periodically in the financial press and presented in leading international forums on the international monetary system and emerging markets capital markets developments.
He is a Visiting Fellow at the Institute of Global Affairs at the London School of Economics and Political Science where he focuses on monetary innovations, a Fellow of the Reinvention Bretton Woods Committee and a Member of the Bretton Woods Committee and of Robert Triffin International. He is fluent in German, English, French and Spanish. He holds an MPhil in economics from the University of Cambridge and a PhD in economic history from the LSE.
All views expressed in this blog are those of Economics Advisory and not necessarily those of Accenture or other clients.