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The Financial World’s Nervous System Is Being Rewired
Article

The Financial World’s Nervous System Is Being Rewired

And It Is Not America That Is Doing It



Editorial Rating

8

Qualities

  • Eye Opening
  • Overview
  • For Experts

Recommendation

Payment systems around the world are evolving rapidly, as legacy networks face competition from fintechs seeking more efficient ways to transfer cash. For example, China’s Tencent and Alibaba are building what industry observers term “parallel banking systems.” This concise but informative article on the geopolitics of finance reveals how these systems are as much about the movement of information as they are about the movement of money.

Take-Aways

  • Payment transfer systems are conduits of information as they move money among individuals and businesses.
  • Banking system alternatives for international transfers of money are contending for geopolitical as well as commercial advantage.
  • Chinese mobile payment providers are leading in technology innovation.
     

About the Author

The Economist is an independent weekly magazine covering business, foreign affairs, science and technology.