Designing the future of money

The way money moves through our economy is changing faster than you can tap your bank card. Emerging forms of digital money, from stablecoins to Central Bank Digital Currencies (CBDCs), together with fintech platforms and new data-sharing models, are transforming how we pay, borrow and save. 

As these technologies evolve, they bring new opportunities and risks. 

For University of Calgary researcher Dr. KJ Choi, PhD, those risks and opportunities carry a weight of responsibility for those designing tomorrow’s financial infrastructure. His research, supported by a Social Sciences and Humanities Research Council grant, explores how we can shape a future financial system that will actually work.

The stakes are high, says Choi. 

“The next few years will define the future of money," says the associate professor of finance with the Haskayne School of Business. "This research helps policy makers craft smart rules before irreversible decisions are made.”

Three big questions guide Choi's work:

1. What happens when you control your own transaction records?

Digital currencies — whether privately issued stablecoins or future CBDCs — could give individuals control over their own transaction records for the first time. That shift raises a provocative possibility: could a market for personal financial data emerge? If so, who benefits? By studying how data ownership might change the balance of power in finance, Choi and his colleagues can help determine what rules are needed to ensure fairness and privacy.

2. Can fintech platforms and banks coexist without destabilizing the system?

Fintech platforms are challenging traditional banks head on, offering faster credit decisions, slicker interfaces and new ways to manage money. In early November, the online trading platform Questrade was granted approval to launch a new bank in Canada. But competition isn’t always benign. Choi and his team are analyzing how this rivalry affects financial stability and customer welfare. Are consumers better off? Or are we creating new fault lines that could crack under pressure?

3. Is more transparency always good?

Digital money promises greater traceability, which can help fight fraud and improve oversight. But too much transparency can also discourage legitimate investment, especially in high-risk or innovative sectors. Choi’s research asks: can too much traceability actually choke off worthwhile investment? The goal is to find the right balance between openness and flexibility.

These questions aren’t just theoretical. They’re rooted in real-world experience. Choi had a front-row seat to the Bank of Canada’s CBDC prototype project, where technical and policy challenges collided daily, and he continues to study similar dynamics in today’s rapidly evolving stablecoin markets. The $60-billion Terra-Luna collapse, which sent shockwaves through global markets, showed how quickly poorly designed digital currencies of any kind can create ripple effects across markets. 

"The next few years will define the future of money," Choi says. "This research helps policymakers craft smart rules before irreversible decisions are made."

While Choi is keenly interested in the intersection of theory and policy, it is working closely with students who are eager to shape the future of fintech, and their questions, that keep his research grounded and forward looking.

This grant-funded research is a collaborative effort, bringing together partners in Canada, the U.K. and Korea. It includes mentoring both PhD and undergraduate students, and sharing insights not just through academic papers, but also with central banks, fintech firms and public outlets. Choi's goal is to connect his research with real-world impact.

Backed by Choi’s research, there is hope we can design a financial infrastructure for the future that sparks innovation and keeps the system safe. Yes, the risks associated with fintech innovations are high. But so is the potential.