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Technology Diffusion Within Central Banking

Technology Diffusion Within Central Banking

Paperback

EconomicsInvesting & Finance

ISBN10: 1025085639
ISBN13: 9781025085630
Publisher: Hutson Street Press
Published: May 22 2025
Pages: 36
Weight: 0.14
Height: 0.07 Width: 6.14 Depth: 9.21
Language: English

We examine the diffusion of the real-time gross settlement (RTGS) technology across the world's 174 central banks. RTGS reduces settlement risk and facilitates financial innovation in, for example, the settlement of foreign exchange trades. In 1985 only three central banks had implemented RTGS systems; by year-end 2006 that number had increased to ninetythree. We find that the RTGS diffusion process is consistent with a standard S-shaped curve. Real GDP per capita, the relative price of capital, and trade patterns explain a significant part of the cross-country variation in RTGS adoption. These determinants are remarkably similar to those that seem to drive cross-country adoption patterns of other technologies.

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