Resolving an Enigma of FinTech, Digital Assets and Electronic Commerce: Insight to Time-varying Dynamic Connectedness

This study investigates the interconnectedness among FinTech, digital assets and e-commerce stocks, offering profound insights into the complex financial ecosystem. Utilizing the advanced Time-Varying Parameter Vector Autoregression and Baruník–Krehlik (2018) models, the research uncovers the relationships and interconnected dynamics amongst these innovative asset classes. The results highlight Mastercard’s pivotal role as both a significant receiver and transmitter of shocks within the market, contrasting with Tencent’s demonstrated resilience and diversification capabilities across various frequencies. These fundamental discoveries aid investors, portfolio managers and policy analysts in navigating the financial markets more strategically, fostering informed investment decisions and robust risk mitigation strategies in volatile environments.