Appunti lezioni di legislazione

SupTech (Supervisory Technology), often grouped with RegTech, is distinct as it specifically serves

financial authorities rather than financial institutions. SupTech involves using advanced

technologies for enhanced data collection and analysis by supervisory agencies, improving their

oversight capabilities. (capacità di controllo)

Understanding Banks

Banks are institutions that conduct banking activities, defined as:

Collecting savings from the public

 Providing credit (credit intermediation)



These activities constitute reserved operations that only banks can perform.

Activities of Banks

Core Banking Activities:

Collection of public savings

 Credit lending



Additional Banking Activities:

Offering payment services

 Issuance of electronic money



Financial Activities:

Financial advice

 Trading activities

 Portfolio management



Other Entities Performing Similar Activities

While core banking activities (collection of public savings and lending from these savings) are

exclusively reserved for banks, other entities can perform certain related activities:

Payment Institutions and Electronic Money Institutions: Can offer payment services and

 issue electronic money.

SIM and SGR (Financial Intermediaries): Authorized to offer financial services like

 financial advice, trading, and portfolio management.

Study Questions:

1. What is the difference between hard law and soft law in regulatory contexts?

2. How does the Regulatory Sandbox operate, and what benefits does it provide to FinTech

companies?

3. Describe the role of TechFin companies and provide examples of how they've impacted

traditional financial markets.

4. How does RegTech differ from FinTech, and what specific benefits does it provide to

regulatory compliance?

5. Explain the purpose of SupTech and how it enhances the capabilities of financial

supervisors.

6. What defines the core activities of a bank, and why are these activities reserved exclusively

for banks?

7. Identify and describe other types of financial entities that can perform activities similar to

banks and clarify the limits of their operations.

LEZIONE 4

� Understanding Money

Money plays a fundamental role in modern economies by fulfilling three essential functions:

� Medium of Exchange: Money facilitates the exchange of goods and services, eliminating

 the inefficiencies of barter systems. With money, transactions become simpler, quicker, and

universally accepted.

� Unit of Account: Money provides a common measure of value that helps individuals and

 businesses assess and compare the worth of different goods and services, thereby

simplifying economic decisions.

� Store of Value: Money allows individuals to preserve their purchasing power over time.

 People can save money securely and use it later, expecting it to maintain its value.

� Key Concept: Beyond these practical uses, money fundamentally represents a claim or "credit"

against its issuer. Therefore, the effectiveness of money is heavily dependent on the trust and

confidence users place in its issuer, whether it be a government or a private entity.

� Different Forms of Money

In today’s financial systems, money can be broadly categorized into public and private forms, each

with distinct characteristics and purposes.

� Public Money

Public money is issued by governmental or central authorities and enjoys strong backing and

guarantees due to its official status.

� Cash: This traditional form of currency includes physical coins and banknotes issued by

 the government. Cash is universally accepted and is tangible, allowing direct and

immediate transactions.

�

Central Bank Deposits: These are mandatory reserves that commercial banks must

 deposit with the central bank. They provide stability to the banking system and guarantee

liquidity.

� Central Bank Digital Currency (CBDC): A newer form of public money, CBDCs are

 digital representations of sovereign currencies. They offer the security of cash combined

with the convenience and efficiency of electronic transactions.

� Private Money

Private money, unlike public money, is issued by private financial institutions and serves various

specialized functions.

� Bank Money (Fiduciary or Scriptural Money): Most commonly held by individuals

 and businesses in electronic deposit accounts at commercial banks. Transfers occur digitally,

facilitating convenient transactions without the physical movement of currency.

� Electronic Money: Defined by EU Directive 200/46/EC, this includes funds stored

 electronically (like prepaid cards or digital wallets). It serves as an alternative to physical

cash, offering security and convenience.

� Virtual Money: Currencies such as Bitcoin operate without centralized oversight. These

 decentralized currencies leverage blockchain technology and present both innovative

possibilities and regulatory challenges.

� Complementary Money: Usually local or regional currencies designed to boost specific

 local economies or community initiatives, complementing the official currency rather than

replacing it.

� Payment Instruments and Regulatory Frameworks

Apart from cash, modern financial transactions increasingly depend on various electronic payment

instruments such as debit cards, credit cards, bank transfers, and mobile payment applications.

These instruments allow efficient and secure transfer of money.

� Regulatory Highlight: In Europe, these payment instruments are regulated under the Payment

Services Directive (PSD2, Regulation 2015/2366), which seeks to improve security, foster

competition, and encourage innovation within financial services and payment systems.

⚖ Ideological Debate: Public vs. Private Money Issuance

A fundamental ideological debate in economics concerns the issuance and control of money:

� Public Sector Argument

Supporters like Knapp and Keynes argue that only government and central banks can ensure

sufficient trust, confidence, and stability required for currency acceptance. Centralized control is

viewed as critical to maintaining economic stability and consumer protection.

� Private Sector Argument

Conversely, economists like Hayek propose that private entities, particularly commercial banks

operating in competitive markets, are better positioned to issue currencies. They argue this

competition can result in more efficient, responsive, and innovative financial services benefiting

consumers.

This debate highlights differing perspectives on trust, efficiency, and economic stability, illustrating

the complexities of modern monetary systems.

� Study Questions:

�

1. Explain in detail the three fundamental functions of money and provide practical

examples.

�

2. Why is trust in the issuer considered vital in the effectiveness and acceptance of money?

�

3. Distinguish comprehensively between public and private forms of money, giving clear

examples for each.

�

4. Define Central Bank Digital Currencies (CBDCs) and discuss their potential implications

on traditional banking practices.

�

5. Discuss the significance of payment instruments in contemporary financial systems. How

does PSD2 aim to enhance these payment services?

�

6. Evaluate the aims and effects of the EU’s Payment Services Directive (PSD2).

�

7. Critically analyze the ideological perspectives regarding public versus private money

issuance, summarizing the key arguments from each side.

LEZIONE 5

� Ideological Origins: Who Should Issue Money?

One of the most fundamental and enduring debates in the field of monetary theory concerns the

question: who should have the power to issue money? This question has historically divided

economists and policymakers into two main camps.

On one side, we find the public sector advocates, such as Knapp (1923) and Keynes (1936), who

believe that money should only be issued by the state or a central bank. The rationale is based on

the idea that only a public institution can offer the level of trust, legitimacy, and stability required

for a monetary system to function reliably. According to this perspective, the power to issue

currency should be a sovereign prerogative, as it ensures macroeconomic stability and public

confidence.

On the other side stands the private sector argument, most famously championed by Friedrich

Hayek in his 1976 work The Denationalisation of Money. Hayek contended that allowing

commercial banks to issue competing currencies would result in better quality money. The free

market, he argued, would incentivize issuers to maintain the value and reliability of their currencies

in order to attract users, thereby outperforming centralized systems.

The relevance of this ideological divide is increasing today. Surveys from the European Central

Bank reveal that while many young people still use cash, they overwhelmingly prefer electronic

payments and systems that are fast, secure, and convenient. As a result, if central banks wish to

retain monetary sovereignty in a digital world, they must innovate.

� The Evolution Toward Public Digital Currencies

In response to these pressures, central banks across the globe have begun developing Central Bank

Digital Currencies (CBDCs). These are digital forms of fiat money, fully backed and issued by a

nation’s central bank. They combine the stability and trust associated with public money with the

speed and flexibility of digital payments.

CBDCs are not merely a technological upgrade. They represent a strategic shift in monetary policy

and digital infrastructure. By offering CBDCs, central banks aim to:

Preserve control over monetary systems

 Provide an alternative to privately issued digital money

 Enhance financial inclusion

 Offer a secure means of payment in an increasingly digital economy



CBDCs are seen as the natural evolution of money in a digital age, especially as new forms of

private money begin to proliferate.

� The Rise of Private Digital Currencies

In recent years, a variety of private digital currencies have emerged. These are not issued by

central banks but rather by private actors, often leveraging new digital technologies. Among the

most prominent of these are stablecoins.

What Are Stablecoins?

Stablecoins are a type of crypto-asset designed to maintain a stable value. Unlike traditional

cryptocurrencies such as Bitcoin, which are highly volatile, stablecoins aim to replicate the price

stability of fiat currencies. They often do so by being pegged to:

Traditional currencies (like USD or EUR)

 Commodities (like gold)

 Baskets of various assets



Their growth has been remarkable because they offer the benefits of blockchain-based transfers

(speed, transparency, low cost) while minimizing volatility. This has made them attractive not only

for speculation but also for everyday use and cross-border transactions.

� The Technology: What is