The Digital Market Economy – An Executive Brief

Let me start by defining a digital economy as a collection of known and newly-added markets, each made of traceable, verifiable, auditable, transparent, coherent and economic value-oriented transactions between legal sellers and buyers of services and products that can be digitally reversible, if permissible by a digital intelligent contract, based on a set of digital regulatory lifecycles captured in a given market ecosystem.

The design of any digital platform requires the ability to create a new autonomous market, using a designated internal API in onboarding new markets, in an orderly and fair manner. A New digital market should utilise innovation hubs, to allow incorporation of viable tested digital markets, shared services, products, participants, market structure, updatable system innovation and transactions. Every market should support a versioned system component until it is superseded by a new version. Each digital market can have a static or dynamic market scope — national, regional, system-defined or international reach.

Any digital onboarding process requires a digital business case that is reviewed against market factors that can be defined by the digital market listing risk framework.

A digital market structure is configured with an associated single or multiple market infrastructure based on market scope. The market infrastructure interface allows interoperability of markets and transactions. The market availability is real-time with 24/7 – global, region, country-group or country-specific services. For maximum flexibility, platforms can allow configurable business opening and closing daily operational times. A digital market should allow the inclusion and exclusion of markets by regulatory jurisdictions.

Each component of a digital economy, market or transaction requires the business concept of activation, deactivation and migration. Some digital markets will have limits and trigger thresholds and the ability to set transaction chains for transaction completion.

Every market needs an internal notification mechanism to alert its digital monitoring authority regarding any internal market dislocation, signalling a market resolution or intervention process. In this architecture, market disruptions are kept to a minimum enabling high availability. A dynamic rerouting digital service can be inherently enabled to allow internal market repair and resilient in situations of supply or demand disruptions in a given market structure.

Every digital market mandates a form of risk identification and management framework with reporting capabilities to both internal and external stakeholders. Stakeholders require a mechanism for resolving of services and product delivery disruptions.

A digital market might require a central regulator, which can be a dynamic smart super participant in a given market or markets to administer the role of market or service governance. The architecture of a digital market should be flexible to accommodate data privacy, data protection, multi-currency product pricing, cross-broader transactions, digital payment services, digital central bank currency options, digital central bank settlement options, secured digital vault, digital ledger mechanism as a single source of truth, unsupervised autonomous AI embedded with accountability and explainability using acceptable human assistance.

A digital market utilises a market surveillance system and a digital business architect required in creating new digital markets, services, products and transactions, enabling public or private market access to eligible market participants.

A digital market might incorporate the concept of market equivalence based on regulatory eligibility, market development governance principles. A digital market can adopt multiple linguistic digital-platform in a multi-cultural country or international market settings.

A new digital economy is like learning a dynamic language, where both the public and private sector are continually collaborating for the advancement of each participant in the service and product delivery chain, using the optimum supply delivery mechanism for all internal and external stakeholders.

A new digital market or platform operates on the foundation of the unity of all stakeholders to create a new inclusive, fair industry-agnostic market.

Every digital market or platform — domestic, regional and international will cater equally for both wholesale and retail participants in the delivery of services, products and value.

Each new digital market needs to be transparent in onboarding all sellers and buyers for available services and products using a multi-currency pricing order model capture in compliance regarding the associated regulations, if permissible.

Every participant should have both market and transactions specific profile, which assist in managing digital market risk. Participants should be able to define acceptable market criteria.

A digital market needs a pricing strategy that uses either a combination of positive prices, negative prices, discount prices with transaction settlement in cash, securities, digital securities, digital-money, asset-based digital money like a stable coin.

A vital aspect of any digital market is the robustness of its pricing mechanism being flexible to accommodate both price-driven and algorithm-driven by AI. The AI algorithm should be flexible and configurable to be triggered by market tradable indicators or trends.
A digital market should have the capacity to notify all market participants of new unforeseen market trends.

Each digital market will support transactional scalability in domestic, regional and international markets. A digital market needs the inherent capacity to adjust in an orderly manner to any disruptions to supply or demand of services and products.

The scale, nature and complexity of a digital market mandate a digital change-manager that mimics enterprise-wide changes weighted by stakeholders consent. A digital market needs the features of digital meeting, digital communication and digital collaboration from any system defined geolocation.

Every digital economy needs to shield its architecture from the following changes — technology, business model, regulatory, product and service with the addition of cyber-secure by design and default.

A digital market should have its communications API, internal process status reporting, critical business process dashboard, market thresholds, market trends analysis, settled transaction status etc.

Creating new digital markets will be the hallmark of the innovation cycle by delivering services and goods globally.

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