Why Chinese Fintechs Have Failed to Reshuffle International Finance
New Chinese financial technologies, including unparalleled electronic payment systems, have so far failed to threaten U.S. financial dominance.
- Obstacles include protection against Chinese acquisitions and concerns about data privacy.
- Cultural and regulatory differences have also made Chinese fintechs’ adoption abroad uneasy.
- Cross-border payments are even more difficult to convert to these fintechs, whose technological benefits are small compared to the advantages of U.S. dollar-based systems.
- Concerns related to financial sanctions have heightened various countries’ interest in alternative payment systems, with little effect so far.
This Memo is also available in French, "Pourquoi les fintechs chinoises ont échoué à reconfigurer la finance internationale".
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Why Chinese Fintechs Have Failed to Reshuffle International Finance
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