RESEARCH AND ANALYTICS

In 2013, Netflix began to release all episodes of a show at once, giving birth to the cultural phenomenon known as "binge-watching". The rising trend of binge-watching has certainly shifted our consumption habits, as 60% of young Americans aged between 13-17 years and 69% of adults aged between 18-29 years, have been found to indulge in TV shows or films in one sitting, according to a survey. A decade earlier, we were binging on VHS, VCDs, and DVDs, and now the medium has changed to mobile, laptops, and smart TVs. Netflix has also gone beyond "binge-watching" to "binge-racing," wherein fans complete a new show on the very same day it's released. Undoubtedly, we all must have "binge-watched" the latest Money Heist in one go, too.

However, there is another side to the story. Binge-viewing is believed to offer us an escape from the toils of daily life since binge-viewing a TV show produces a continuous stream of dopamine in our brains. There is a very fine line between enjoying and abusing, and, like any form of dependence, studies have shown that "binge-watching" shows might actually be less enjoyable and less memorable than watching new episodes on a weekly basis.

More importantly, the effects of heavy use of streaming platforms such as Netflix, Hulu, and Amazon Prime have been reported to include depression, weight gain, chronic illness, sleep disorders, and even a decreased libido. Netflix's CEO, Reed Hastings, himself, has admitted that Netflix is actually competing with users' sleep to make money. And they have been very successful so far, as is evident from the increase in their paid subscribers, which grew from 71mn in 2015 to 204mn in 2020.

Electric vehicles (EV) are gaining acceptance globally. However, the key to their rapid adoption is improved battery driving range and charging infrastructure, which are far from available in many parts of the world. So, what could be the solution? Battery Swapping Systems (BSS)!

BSS can take care of many issues the existing EV mobility faces, such as expensive EVs, battery costs, operational range, and charging time. BSS can also help alleviate safety concerns as batteries will be charged in a controlled environment. China has already started battery swapping in its buses, taxis, and metros to amplify its public transportation. Moreover, BSS can inject power back to the grid apart from being treated only as a storage device. Thus, BSS offers additional benefits like frequency regulation, load following, and voluntary reserve provisions.

However, the BSS model is limited to few countries. Then, some naysayers constantly doubt its feasibility, primarily citing its techno-commercial dynamics. Further, the concept, which is nascent, has many drawbacks such as infrastructure cost, vehicle compatibility, battery degradation, and, most important, the lack of standardization of vehicles and batteries. But despite its flaws, the BSS model can mature with time and could ultimately offer a viable alternative, encouraging the rapid adoption of EVs.

Digitization of payment systems has given rise to disruptive payment technologies such as Central Bank Digital Currencies (CBDCs); a digital form of a country’s fiat currency in which its central bank issues e-coins or accounts instead of printing money. The share of major central banks that actively engaged in CBDC work has moved up from c.65% in 2017 to c.85% in 2020. Many central banks are already in the advanced stages of engagement. Countries like China and Sweden are already into the advanced pilot stages for e-CNY and e-Krona, while the Bahamas and the Eastern Caribbean Monetary Union have recently started issuing CBDCs.

The growing interest in CBDCs stems from multiple issues such as declining cash use, the emergence of cryptocurrencies, Distributed Ledger Technology (DLT), the need to uphold the central bank’s authority, and concerns about financial stability. CBDCs also promises to be a faster, cheaper, and more efficient payment system with the expectation of near-instant settlements, lower transaction costs, and lower risk of default (use of Blockchain technology). It can also promote financial inclusion in underdeveloped countries.

However, broader concerns such as disruption to the traditional banking system (such as movement of deposits to CBDCs), flight of capital, data privacy, technical interoperability, and so forth, cannot be overlooked and need due consideration by central banks. As of now, the onus lies on central banks to develop and enhance the accessibility of CBDCs as a legitimate payment system because the journey of adopting digital currency would be nothing short of a bumpy ride.