Volume 19, Issue 4 (12-2024)
J. Mon. Ec. 2024, 19(4): 565-586 |
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Mojab R. Technology Adoption and Regulations: The Ideal Level of Discretion. J. Mon. Ec. 2024; 19 (4) : 6
URL: http://jme.mbri.ac.ir/article-1-672-en.html
URL: http://jme.mbri.ac.ir/article-1-672-en.html
Monetary and Banking Research Institute
Abstract: (860 Views)
The integration of new technologies, although beneficial, poses significant regulatory challenges. This article emphasizes that while standardization is essential to prevent inconsistency and unpredictability, maintaining a certain degree of discretion is also necessary. Using insights from microeconomic theory and international best practices, the article categorizes regulatory challenges such as competition, conflicts of interest, job displacement, rent-seeking, security and privacy concerns, fraud, tax evasion, corruption, money laundering, and compliance with anti-terrorism measures. Several regulatory tools are identified to effectively manage these challenges. These include transparency and disclosure, collaboration and information sharing, financial incentives (grants, subsidies, and tax incentives), reducing barriers to market entry and exit, open standards and interoperability, and whistleblower protection. A survey was conducted to assess expert opinions on the gap between current regulatory practices and optimal standards for each tool. The results revealed notable discrepancies, particularly regarding barriers to market entry and exit. The results indicated that current regulations for market entry are overly restrictive compared to the optimal levels recommended. Additionally, the survey highlighted that reducing barriers to exit for large financial institutions requires greater discretionary flexibility compared to smaller firms. The results show a need for targeted regulatory adjustments based on institutional differences and systemic importance.
Article number: 6
Type of Study: Original Research - Theoric |
Subject:
Economics
Received: 6 Jan 2025 | Accepted: 20 Jul 2025 | Published: 6 Aug 2025
Received: 6 Jan 2025 | Accepted: 20 Jul 2025 | Published: 6 Aug 2025
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