Decentralized Financial System and Economics

Academic unit or major

Humanities and social science courses

Instructor(s)

Junpei Miwa

Class Format

Lecture

Media-enhanced courses

-

Day of week/Period
(Classrooms)

Class

-

Course Code

LAH.A532

Number of credits

100

Course offered

2025

Offered quarter

4Q

Syllabus updated

Apr 2, 2025

Language

Japanese

Syllabus

Course overview and goals

The transition from traditional financial systems, primarily centered around banking, to autonomous decentralized financial systems leveraging blockchain technology is gaining momentum.
Although traditional financial systems currently dominate, we will explore the evolving landscape of finance by contrasting them with their emerging counterparts, with a focus on: 1) monetary theory, 2) financial theory, 3) governance and 4) regulation.

Course description and aims

This course aims to foster an understanding of the pivotal role of financial regulation and to develop the ability to critically assess the evolving financial landscape from a public policy perspective. Through discussions, report submissions, and collaborative exploration, we will collectively examine novel approaches, including the formulation of effective governance systems, in anticipation of the transformative changes within the financial sector. Furthermore, this course will deepen participants' knowledge of emerging financial phenomena, such as decentralized finance (DeFi).

Student learning outcomes

実務経験と講義内容との関連 (又は実践的教育内容)

With over two decades of engagement in the financial sector, including nearly 17 years at the Financial Services Agency (FSA) of Japan, I have been deeply involved in shaping international regulations and standards for financial institutions, particularly Basel regulations, amidst the globalization of finance. My experience encompasses navigating the 2008 financial crisis and participating in subsequent global financial regulatory reforms. Transitioning to the fintech domain around 2017, I served as the inaugural director of the newly established Fintech Office at the FSA. Since approximately 2017, I have been contemplating the future trajectory of the financial system towards autonomous decentralization, driven by the integration of technologies like blockchain.
This journey has underscored the necessity for dialogue and discourse beyond traditional stakeholders such as financial institutions, engaging with academia in cryptography and information security, as well as cryptocurrency developers. To facilitate these interactions, I contributed to the establishment of the Blockchain Governance Initiative Network (BGIN). At the FSA, I spearheaded international collaborative research projects on blockchain technology. Leveraging my experience in international financial regulatory development and technical insights from the fintech sector, I aim to cultivate practical thinking and innovative capabilities in the realm of "new" finance, together with the participants of this course.

Keywords

finacial system, blockchain, Decentralized Finance, DeFi, FinTech, BigTech, Money theory, Privacy, Decentralized Governance, Web3

Competencies

• Specialist skills
• Intercultural skills
• Communication skills
• Critical thinking skills
• Practical and/or problem-solving skills

Class flow

The course will consist of lectures spanning from Session 1 to Session 7, incorporating interactive student discussions.
Students are required to submit mid-term and final reports via Science Tokyo LMS, based on the course content. (Please refer to Science Tokyo LMS for specific submission deadlines.)
For inquiries beyond the scope of the lecture material, please contact the designated course coordinator via email (refer to the "Contact Information (Email/Phone)" section below).
Mid-term (upon completion of Session 4) and final (upon completion of Session 7) reports are to be submitted through Science Tokyo LMS (refer to below for submission deadlines).
Please note that some sessions may be conducted online due to instructor circumstances. In such cases, information will be shared via Science Tokyo LMS, and efforts will be made to ensure qualitative consistency with in-person sessions.

Course schedule/Objectives

Study advice (preparation and review)

For optimal learning, please engage in a focused 60-minute study session, having carefully reviewed the specified readings beforehand.

Textbook(s)

Prior to each session, specific readings will be assigned from sources including Bank of Japan publications, general economics books (macroeconomics), and documents from international institutions like the IMF.

Reference books, course materials, etc.

Prior to each session, specific readings will be assigned from sources including Bank of Japan publications, general economics books (macroeconomics), and documents from international institutions like the IMF.

Evaluation methods and criteria

Evaluation will be based on mid-term and final reports, weighted at 40% and 60%, respectively. Mid-term reports should aim for approximately 3,000 words, and final reports for around 5,000 words. However, word counts serve as guidelines, and the content of the reports will be the primary focus of grading and evaluation. Assessment will be fundamentally based on three criteria: 1) accuracy in capturing factual information, 2) quality of logical construction, and 3) depth of personal insight. In addition to these, contributions during class discussions and the level of engagement demonstrated in the reports may be considered, and adjustments may be made to the report scores accordingly.

Related courses

• LAH.S437 ： Essence of Humanities and Social Sciences42:Consensus Building
• LAH.A401 ： Digital Innovation in Financial Institutions

Prerequisites

While a predisposition towards general economics, including macroeconomics, monetary and financial theories, and an understanding of blockchain technology is appreciated, this course transcends conventional economic lectures. It endeavors to integrate economic analytical frameworks within the context of an evolving financial paradigm.

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

Course instructor: Jumpei Miwa j-miwa[at]k-liberalarts.net

Course coordinator: Takehiro INOHARA inostaff[at]shs.ens.isct.ac.jp

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.
Science Tokyo (science and engineering fields) provides a wedge-shaped style education that allows students to continuously take liberal arts courses from a Bachelor’s Program to a Doctoral Program. Students are recommended to take liberal arts courses in ascending order of course level. In the semester right after enrollment in the Master’s Degree Program – i.e., 1Q and 2Q for students who enroll in spring, and 3Q or 4Q for students who enroll in fall – students may register only in 400-level Humanities and Social Science Courses.
Students may take 500-level Humanities and Social Science Courses after studying at least six months after enrollment, i.e., in 3Q and 4Q for students who enroll in spring, and in 1Q and 2Q of the following year for students who enroll in fall.