2019-07-12, Kondova, Galia, Simonella, Geremia

This paper provides a comparative analysis of the new blockchain-based start-up and small companies funding methods, namely, initial coin offerings (ICOs) and security token offerings (STOs) against the backdrop of traditional fundraising methods like venture capital and private equity building on the experience of Switzerland. In particular, the comparative analysis is based on a theoretical overview of the nature of these blockchain applications, the relevant legislative framework as well as recent market developments with a focus on Switzerland. The paper concludes that both ICOs and STOs are characterized by lower entry barriers for investors and higher cost efficiency as compared to traditional start-up fundraising methods. However, STOs provide more security to investors than ICOs due to their wider regulation.

2019, Kondova, Galia, Barba, Renato

This paper draws parallels between the OECD principle on disclosure and transparency and the decentralized autonomous organization (DAO) governance on a blockchain. It provides an overview of the DAO concept based on self-executing smart contracts on a blockchain. The blockchain keeps a record of data and transactions in a decentralized and immutable form. The self-executing smart contracts on a blockchain ensure transparency and automation of the decision-making process in a DAO. The paper concludes that a DAO governance structure provides for transparency and enables shareholders to exercise their rights in an informed way. Considering the early stage of development of DAOs, however, caution is needed especially with regards to potential protocol vulnerabilities and legal uncertainties.

2018-10-30, Kondova, Galia, Nadig, Linard, Egle, Ulrich

This evaluation case study analyzes developments related to crypto assets and the underlying crypto technology in the case of Switzerland. The canton of Zug was the first public institution worldwide to accept the cryptocur-rency Bitcoin as an official means of payment in 2016. Since then the Zug region has developed into "Crypto Valley" by attracting around 350 blockchain companies and the foundation behind the cryptocurrency Ethereum. However, in 2018 the value of Bitcoin sharply dropped. Moreover, numerous cases of cyber thefts have been reported worldwide recently. In this context, is the idea for Switzerland to focus on the crypto industry providing an opportunity for the country to claim its leading position in innovation and technology? Or would this be rather a risk for the country and its financial sector? The students are asked to undertake an evaluation based on a SWOT analysis and the Porter Diamond Model.

2000, Kondova, Galia

2019, Zbinden, Fabian, Kondova, Galia

This paper studies recent economic and political developments in Mexico and the potential role of blockchain technology in improving governance and fighting corruption in the country. Mexico badly needs innovative solutions to fight the persistent problems of corruption and inefficient governance. At the same time, blockchain, being a decentralized technology, promises to reduce administrative costs and ensure transparency in the public services. The paper takes stock of the current state of blockchain implementation in the economy and in the public administration of Mexico as well as studies the advantages and disadvantages related to the further outspread of the technology in the country. Moreover, the work aims at drawing policy recommendations as to the future role of blockchain in the public management and economic development in Mexico.

2019, Kondova, Galia

The self-sovereign identity (SSI) builds on the notion that the identity provider (the user) possesses full control of their data. In particular, the user could store identity data and decide how much data they share. The user could also decide with whom to share their personal data. The implementation of the SSI concept seems to be fully supported by the features of blockchain technology, in particular, decentralization, peer-to-peer interactions and data integrity. The Sovrin SSI and the uPort SSI present two blockchain-based SSI applications that are explained in the presentation.

2018-05-30, Bandyopadhyay, Trishit, Bobst, David, Hummel, Tobias, Kondova, Galia

This paper applies a data envelopment analysis (DEA) to study the efficiency and productivity changes in the Swiss cantonal bank sector in the period 2006-2014. The efficiency analysis is conducted by applying the production input-oriented DEA variable returns to scale model in a three-stage procedure. The productivity is studied by estimating a DEA-based Malmquist Productivity Index (MPI) that provides evidence of increasing productivity growth on average for the sector in the studied period. The main source of productivity growth as per the components of the Banker, Charnes and Cooper (BCC) MPI model is related to a frontier-shift (technological innovation) rather than to improvements in the technical efficiency. The decreasing average DEA scores in the post-global financial crisis period of 2008-2014 further support this finding. In the second stage of the efficiency analysis, the environmental factors influencing the productivity growth are analysed by conducting a general method of moments (GMM) regression. The results provide evidence of a positive and statistically significant relationship between the new annual residences per canton and technical efficiency. In the third stage, the environmental variables from the second-stage regression are included within the constraints of the first-stage DEA model as proposed by Ray [1]. The third-stage DEA scores support the evidence of slightly decreasing average post-global crisis technical efficiency. The overall average technical efficiency in the Swiss cantonal banking sector, however, remains at a relatively high level in the studied period.

2019, Kondova, Galia, Bandyopadhyay, Trishit

This paper applies a data envelopment analysis (DEA) to study the effect of non-bank financial intermediation on bank efficiency in the eight EU jurisdictions individually monitored under the Financial Stability Board (FSB) Global Shadow Banking Monitoring Report in the period 2014-2016. The efficiency analysis is conducted by applying a profit-based input-oriented DEA variable returns-to-scale model in a two-stage procedure. In the first stage, the average DEA efficiency scores are calculated. We find evidence that the average aggregate technical efficiency increased on average from 2014 to 2016. In the second stage, the impact of environmental factors like the Financial Stability Board’s (FSB) narrow measure on non-bank financial intermediation as well as macroeconomic factors is analyzed by conducting a Tobit regression. The results provide evidence of a negative relationship between non-bank financial intermediation and average bank efficiency and a positive impact of GDP on average bank efficiency.

2019, Kondova, Galia, Nadig, Linhart

This case study aims to facilitate the conduct of an industry impact assessment of the blockchain technology in the case of Switzerland. The evaluation applies the strategic business value framework prosposed by McKinsey (2018). The work also provides an overview of the blockchain technology, its major advantages and disadvantages as well as the recent blockchain-related developments in Switzerland. The strong interest in the blockchain technology is discernable in the publicly announced “Blockchain Nation” vision of the country’s authorities.

2009, Kondova, Galia