Towards Digital Money Interoperability: Data Governance Coordination for Cross-border Payments

33 Pages Posted: 31 Jan 2023 Last revised: 30 Nov 2023

See all articles by Shuping Li

Shuping Li

University of Hong Kong, Faculty of Law

Date Written: January 30, 2023

Abstract

Digital money interoperability will facilitate cross-border payment and capital flow, benefiting money users, but data protection concerns the regulator. Information matters for all aspects of digital money: guaranteeing payment security, finality, supervising capital flow, and establishing users’ credit profiles for risk management. Due to the states’ concerns about data sovereignty and data as a valuable economic resource, payment institutions’ market profits, and users’ privacy protection, cross-border data sharing is often impeded. Based on the political will and economic benefits of cooperation, countries may adopt multilateral or bilateral legal frameworks for data sharing. Specific data governance measures include data classification and grading, data access, collection, processing, and erasure by the system operator, and data portability by the user, subject to operational and regulatory requirements. Legal and technical arrangements are equally important to facilitate data sharing by embedding conditional data layer interoperability in the digital infrastructure.

Keywords: cross-border payment, data governance, data sharing, digital money, interoperability, regulation by design

Suggested Citation

Li, Shuping, Towards Digital Money Interoperability: Data Governance Coordination for Cross-border Payments (January 30, 2023). Houston Journal of International Law, Vol. 45, No. 2, 2023, University of Hong Kong Faculty of Law Research Paper No. 2023/10, Available at SSRN: https://ssrn.com/abstract=4343159 or http://dx.doi.org/10.2139/ssrn.4343159

Shuping Li (Contact Author)

University of Hong Kong, Faculty of Law ( email )

Pokfulam Road
Hong Kong
Hong Kong

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