Related papers: CBDC Stress Test in a Dual-Currency Setting
Using Croatian data and the IMF's Natural Disaster Debt Dynamic Tool, this paper assesses how public debt adjusts to extreme events in a small open economy. We compare debt paths under baseline and stress scenarios, the latter simulating a…
This paper provides an in-depth review of the evolving role of quantum computing in the financial sector, emphasizing both its computational potential and cybersecurity implications. Distinguishing itself from existing surveys, this work…
Stablecoins - crypto tokens whose value is pegged to a real-world asset such as the US Dollar - are an important component of the DeFi ecosystem as they mitigate the impact of token price volatility. In crypto-backed stablecoins, the peg is…
This paper shows that disregarding the information effects around the European Central Bank monetary policy decision announcements biases its international spillovers. Using data from 23 economies, both Emerging and Advanced, I show that…
In the aftermath of the financial crisis, supervisory authorities have considerably altered the mode of operation of financial stress testing. Despite these efforts, significant concerns and extensive criticism have been raised by market…
A nearly autonomous management and control (NAMAC) system is designed to furnish recommendations to operators for achieving particular goals based on NAMAC's knowledge base. As a critical component in a NAMAC system, digital twins (DTs) are…
Obtaining a controlled invariant set is crucial for safety-critical control with control barrier functions (CBFs) but is non-trivial for complex nonlinear systems and constraints. Backup control barrier functions allow such sets to be…
The use of mobile payment services is an essential contributor to financial inclusion in emerging markets. Unfortunately, the service has become a platform for fraud. Mobile payment users need to be digitally resilient to continue using the…
Stablecoins have become a foundational component of the digital asset ecosystem, with their market capitalization exceeding 230 billion USD as of May 2025. As fiat-referenced and programmable assets, stablecoins provide low-latency,…
Robust Markov Decision Processes (RMDPs) have received significant research interest, offering an alternative to standard Markov Decision Processes (MDPs) that often assume fixed transition probabilities. RMDPs address this by optimizing…
This paper applies biomimetic engineering to the problem of permissionless Byzantine consensus and achieves results that surpass the prior state of the art by four orders of magnitude. It introduces a biologically inspired asymmetric…
We consider a central bank strategy for maintaining a two-sided currency target zone, in which an exchange rate of two currencies is forced to stay between two thresholds. To keep the exchange rate from breaking the prescribed barriers, the…
Crypto-currencies like Bitcoins are relatively recent phenomena on the online Internet landscape and an emerging force in the financial sector. While not conforming to traditional institutional practices, they are gaining increasing…
As cryptocurrencies gain popularity and credibility, marketplaces for cryptocurrencies are growing in importance. Understanding the dynamics of these markets can help to assess how viable the cryptocurrnency ecosystem is and how design…
This paper investigates systemic risk transmission across stablecoin markets using Quantile Vector Autoregression (QVAR). Analyzing eight major stablecoins with day data coverage from 2021 to 2025, supplemented by minute-level event studies…
The rapid digitalization of banking services has significantly transformed financial transactions, offering enhanced convenience and efficiency for consumers. However, the increasing reliance on digital banking has also exposed financial…
One challenge in the optimization and control of societal systems is to handle the unknown and uncertain user behavior. This paper focuses on residential demand response (DR) and proposes a closed-loop learning scheme to address these…
In the context of containment of default contagion in financial networks, we here study a regulator that allocates pre-shock capital or liquidity buffers across banks connected by interbank liabilities and common external asset exposures.…
Stablecoins have turned out to be the "killer" use case of the growing digital asset space. However, risk management frameworks, including regulatory ones, have been largely absent. In this paper, we address the critical question of…
Critical infrastructures increasingly rely on interconnected and software-driven Cyber-Physical Systems (CPS), exposing operational processes to both accidental failures and sophisticated adversarial behavior. While Byzantine Fault Tolerant…