•It is the oldest and most consolidated payment instrument, as well as the simplest. –>Operation
payment is completed by simply handing over the banknote.
•Bank money is created by private individuals (banks/post offices) against demand deposits.
legal electronic and ua from clients to them and can be processed using a range of payment instruments
(checks, bank transfers, fundraising instructions, credit and debit cards). This is the debt of the bank/post office.
current comparison. This is a noticeable part of the total money supply; put into circulation
for credit transactions (money purchased by banks is entered into the system according to
credit) (the bank holds the money and undertakes to return it upon presentation. I can use amounts deposited through
different forms of payment)
It has a confidential treatment or is accepted only with the consent of the borrower.
• It is also called:
1. “written money”, because they generate written documents that prove the movement of funds on
payment service providers. (issued by the bank against demand deposits) (each movement
account calls accounts)
2: “trust money”, since they are accepted for payment only with the consent of the borrower (Article 1197 of the Civil Code).
and with the convertibility of this debt into legal currency.
• Payment transaction is more complex as it occurs in two steps and involves one
different operators.
Exchange (instrument) phase + Settlement phase (phase in which banks participate,
who must confirm the availability of funds)
The intervention of the banking system allows for a concrete transfer of purchasing power and therefore
complete payment (fulfillment of a monetary obligation between parties)
(unlike paper money this is not an immediate procedure)
• Electronic money (this is monetary availability embedded in an electronic medium such as
so ware or prepaid card) is a prepaid means of payment that is included in its physical support.
monetary value. The transaction represents an information flow: money disappears and becomes information.
regarding its translation. (irrelevant, transfer of information flow between users)
• A representative of the credit the card user has with the issuer.
(—> bank or electronic money institution EMI)
• built into an electronic device (prepaid card with microchip or software)
•and are accepted as a means of payment by companies other than the issuer
•Cryptocurrency is an intangible virtual payment solution that does not exist in either physical form or
paper or metal format. It is generated and exchanged exclusively electronically, through the system
electronic accountant built on the basis of blockchain technology ≠ legal, banking, electronic money.
– Cryptocurrencies (crypto-assets) such as Bitcoin
– Stablecoin -> linked to a fixed exchange rate to a fixed currency (e.g. Diem, Tether), trend correlates with
coins such as dollar, etc.
•Digital currency (Central Bank Digital Currency) is a currency under the control of the authorities.
traditional monetary systems and are based on the use of blockchain technology (a type of digital euro)
PAYMENT SYSTEM
•If you are responsible for transferring money into space from one object to another
•If the clock of the financial system performs a monetary function, that is, it provides funds
payment is accepted by the population and carries out all operations necessary to settle trade
•This is infrastructure of fundamental importance for the functioning of a modern economy.
It is a service “industry” that produces and transfers money.
(this is a system consisting of many elements, such as intermediaries who produce and transmit
money, there are tools and procedures used by both private and commercial payment systems, as well as various
payment procedures such as legal tender, banking, etc., the payment system cannot ignore
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a system of transmission networks through which government-controlled information is exchanged
control, for example the central bank is also a supervisory authority)
•It is a complex institutional apparatus consisting of rules, intermediaries and instruments on which the system is based.
money turnover.
SUBJECTS RELATED TO THE USE OF PAYMENT INSTRUMENTS
• Demand for payment services. Legislative Decree No. 11 of January 27, 2010 defines:
– “payment service user” means the payer and the recipient
– payer “the entity issuing the payment order”
– beneficiary – subject of payment.
• Provision of payment services:
– “central banks, public authorities and territorial public administrations” (participate in the system)
– banks, Poste Italiane Spa, Institute of Electronic Money (IMEL) and payment institutions (real
public service providers).
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Fundamental European stages
SEPA (Single Euro Payments Area) —>
The project, implemented since November 2009, aims to create a harmonized payment market that offers
common payment instruments (credit cards, direct debits and charge cards) that can be
be used with the same ease, safety and conditions typical of the national context.
SEPA no longer distinguishes between national and transnational payments.
(within SEPA or a harmonized geographical area established to unify payment systems
electronics with general rules defined by PSD)
PSD Regulation (64/2007/EC, Payment Services Directive)—>
The European Directive, introduced in 2010, aims to harmonize the regulatory framework relating to the payment system.
in the SEPA environment. Promotes the use of electronic payment instruments (payment cards, bank transfers,
addebi dire), strengthens user protection, expands the hopes of payment service providers
(IP is your payment)
PSD2 standard (Payment Services Directive 2366/2015/EC)—>
The second European Payment Services Directive comes into force on 13 January 2016. Its goal is to create
regulatory conditions for a truly integrated payments market based on clear rules and
a modern, uniform application that can become a driver of economic growth of the Union
European, capable of guaranteeing a high level of protection.
The security risks of electronic payments have increased in proportion to the technical sophistication and sophistication.
use of new tools and services.
EMI = companies other than banks authorized to issue electronic money.
EMIs can also provide payment services and provide financing for a maximum period of 12 years.
months and carry out related and instrumental activities” (less extensive payment field compared to banks)
IP = companies other than banks and EMIs (telephone companies, supermarkets) that offer “with
payment” stored in the name of clients, which can be used for payment transactions. They can issue cards
debit and credit, in this case providing short-term credit. But they can’t collect
do not issue electronic money (target payment system, more limited scope)
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Banks offer bank money, electronic money (prepayment instruments) and offer payment services.
where with payment
Cryptocurrency
• hidden = visible only if a certain information code is known
•I am not responsible to anyone
• They are not regulated and are issued and controlled based on computer algorithms.
• They are accepted by the parties to the transaction on a voluntary basis.
• The most important example is “Bitcoin”, which can be purchased in exchange for fiat currency in the market.
Thelema does not regulate us at all.
CREDIT FUNCTION -> link function between savings (surplus unit) and investment (in decit)
About resource transfer
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CHAPTER 3 – ALLOCATIVE FUNCTION (second function of the financial system)
Summary:
1. What is meant by distribution function
2. How are the units providing and receiving funds determined? –>FINANCIAL BALANCE
3. Connecting chains
• The ability of the financial system to link savings with investment through two financial schemes.
transfer occurs:
1.channel or circuit, direct or/intermediate, that passes through banks (intermediary transformers)
—>banks collect deposits, transform them qualitatively and quantitatively and transfer them to companies
requesters (they just don’t pass it on to requesters) the connection is filtered by the man-in-the-middle
2. direct channel through the market -> the family can invest savings directly in the markets.
Through these two channels, two entities giving funds (surplus units) and recipients of funds meet.
(city unit)
•consists of the connection of S with I, the transfer of financial resources between economic agents with financial needs.
contrast
• funds are transferred. Two categories of entities meet through existing “financial channels”
economies: givers of funds (units in excess) and recipients of funds (units in decite)
– surpluses find profitable use of available resources.
– the units in question find resources to finance their investments
To be able to determine which units are in surplus and which are in deficit, we must introduce the concept
financial balance sheet -> an instrument that identifies units with a surplus and units with a deficit (identifies the donor of funds or
borrowers) allows you to analyze the financial behavior of an economic agent
Economic agent situation -> (economic agent = e.g. families, businesses, etc.)
The study of an economic agent to understand its functioning can be analyzed from different points of view:
1) Balance through balance
2) Economic through the income statement
3) Financial through the scheme of funds and use of funds.
BALANCE
1) We look at the balance with the values of reserves (a measure of the phenomenon in a given
instantly) ACTIVE PASSIVE
REAL ASSETS (AR) Net Worth (PN)
FINANCIAL ASSETS (AF) FINANCIAL LIABILITIES (PF)
Total = subject’s gross wealth Total = net wealth
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REAL ACTIVITY (AR) = cars, real estate, paintings, goods that have their own intrinsic value.
FINANCIAL ASSETS (AF) = bonds, stocks, bonds, money
NET WORTH = balance between total assets and financial liabilities = current wealth
(qualified or solvent if total assets exceed financial liabilities)
FINANCIAL LIABILITIES=
INVESTMENTS (represented by assets) ARE FINANCED BY ISSUING LIABILITIES
FINANCIAL in the form of a mortgage or home equity (accumulated savings)
Goods have intrinsic value because they can produce services that have real and immediate benefit to society.
owner (real estate, houses, land, equipment, systems)
Financial contracts that convey rights over present and future income and wealth.
issuer (currency, deposits, bonds, shares)
Financing of investments can be carried out through the use of savings (PN – accumulation
savings), issuing financial obligations or resorting to disinvestment of previous investments.
INCOME CERTIFICATE
2)—>Let’s look at economic equilibrium with flow values (the dimension of a phenomenon over a period of time
specific interval