TOKYO INSTITUTE OF TECHNOLOGY

Course description and aims

The financial regulations generally target the financial intermediaries with centralized governance system such as banks, insurers, asset managers and brokerage firms etc. The growing distributed ledger technologies underpinned by decentralized blockchain is giving rise to the new financial services that builds on the nature of autonomy and decentralization. This type of financial services will dilute the effectiveness of current regulations owing to such non-centralized nature.
The purpose of this lecture will aim at i) considering how we manage and maintain the effectiveness of financial regulations (financial stability, user protection, AML etc.) amid the rise of so-called DeFi (Decentralized Finance) that builds on nature of autonomy and decentralization, and ii) exploring the necessity of an auxiliary or alternative approach that is more suitable for DeFi
These issues will be addressed based on the implications of law and economics.
In this context, this lecture will also seek to design new governance mechanism for decentralized financial system and consider how we operationalize it. The history of internet governance will provide a good reference point to consider the nature of decentalized network.
In addition, this lecture will additionally address the contemporary concerns over BigTech’s entry to financial system in order to contrast the nature between BigTech and DeFi, and to recognize the comprehensive concerns inherent to the financial regulations and current financial system.

Student learning outcomes

The lecture will facilitate the understandings on the role of financial regulations and forge the contemplation on ongoing changes of financial system from pubic policy perspectives. Building on the contribution to discussion and submission of reports, we will explore a possible governance system and an approach against changes of financial system and cultivate the knowledge of new finance space such as Decentralized Finance (DeFi).

Course taught by instructors with work experience

Keywords

finacial system, blockchain, Decentralized Finance, DeFi, FinTech, BigTech

Competencies that will be developed

Class flow

Class 1 - Class 7：Lecture style (sometimes "unconference style" discussions are exercised (esp. Class 5 and 7))
- Students are required to write "Summary report" after the class (except class 5 and class7), and submit the report through OCW-i or T2SCHOLA. (*cares should be taken about the deadline of each report as stated below)
- Students can write questions at the end of "summary reports."
- Questions other than the content of the class will be accepted by e-mails by the course coordinator (See the item of "Contact information (e-mail and phone)" below).
- Students have to submit an "Interim and Wrap-up report" (Class 5 and 7) (*cares shoule be taken about the deadline of each report as stated below) through OCW-i or T2SCHOLA at the end of the course.

This is a three-day intensive course, and dates and time periods are as follows:
　February 10(Thu): Class 1(Period 5-6)
　February 14(Mon): Class 2(Period 5-6), Class 3(Period 7-8)　[The deadline of summary report (Class 1, 2, and 3) should be till Feb, 16 (Wed)]
February 16(Wed): Class 4(Period 5-6), Class 5(Period 7-8) [The deadline of summary report (Class 4) and interim-report (Class 5) should be till Feb, 18 (Fri)]
　February 18(Fri): Class 6(Period 5-6), Class 7(Period 7-8) [The deadline of summary report (Class 6) and wrap-up report (Class 7) should be till Feb, 19 (Sat)]
Students are required to attend all classes during four days.

Course schedule/Required learning

Out-of-Class Study Time (Preparation and Review)

To enhance effective learning, students are encouraged to spend approximately 100 minutes preparing for class and another 100 minutes reviewing class content afterwards (including assignments) for each class.
They should do so by referring to course material.

Textbook(s)

nothing required

Reference books, course materials, etc.

While the reference material will be provided thorough the lecture, the following webstite of JFSA reagarding "G20: Efforts on Governance Issues in Decentralized Financial Systems" is a good reference point to recognize the lecture. It is highly recommended to read the reserch papers on "Multilateral Joint Research Project."
https://www.fsa.go.jp/en/policy/bgin/information.html

Assessment criteria and methods

Short Summary Report subnitted after every class (50%) + Interim-Report and Wrap-up Report (50%)
*Summary report: around 150-300 words (in case of English)
**Interim- and Wrap-up Report: around 1000-1500 words (in case of English). The volume of words is just for your reference. The contents of reports are rather prioriteized for assessment.

*** High cares should be taken to the deadline of each report because the intesive course is under tight schedule. 　Every summary report submitted helps you reflect the contents to the Interm-report and Summary-report. As the deadline is tight, the Wrap-up report will aim at steamlining with the Interim-report submitted, and will also be materialized by the elaborated contents of Interm-report. The assessment of Interim and Wrap-up reports will be made by the two steamlined ones.

Related courses

• LAH.S437 ： Essence of Humanities and Social Sciences42:Consensus Building
• LAH.A401 ： Digital Innovation in Financial Institutions
• LAH.S438 ： Essence of Humanities and Social Sciences43:Financial/Economic Activities and Corporate Strategy

Prerequisites (i.e., required knowledge, skills, courses, etc.)

Hopeful: knowledge regarding finance and/or blockchain

Contact information (e-mail and phone)    Notice : Please replace from "[at]" to "@"(half-width character).

Course instructor: Jumpei Miwa (j-miwa1976_at_outlook.jp (Please replace "_at_" with "[at]" (half-width character)))).

Course coordinator: Takehiro INOHARA (inostaff_at_shs.ens.titech.ac.jp (Please replace "_at_" with "[at]" (half-width character)))).

Office hours

While contact before and after classes, or e-mail for an appointment is allowed, it is pereferable that questions and notions are actively raised in the class as the time of Q&A session is ensured in the class.

Other

This course is 500-level course.
Tokyo Techʼs “wedge-shaped style education” enables students to pursue liberal arts education in a phased manner throughout undergraduate and graduate programs. Students are encouraged to take courses in the sequence of 100, 200, 300, 400, 500, and 600 levels. As such, masterʼs students entering in September must begin from 400-level liberal arts courses in 3Q and 4Q of the first year, then proceed to 500-level courses. Students can register for 500-level Humanities and Social Science courses six months after their entrance (i.e. students admitted in April can register in 3Q and 4Q, and those admitted in September can register in 1Q and 2Q).