Some Economics of Private Digital Currency
"Economic Analysis of the Digital Economy," A. Goldfarb, S. Greenstein and C. Tucker (eds), The University of Chicago Press, 2015
28 Pages Posted: 24 Jul 2013 Last revised: 4 Jul 2019
Date Written: July 23, 2013
Abstract
This paper reviews some recent developments in digital currency focussing on platform-sponsored currencies such as Facebook Credits. In a model of platform management, we find that it will not likely be profitable for such currencies to expand to become fully convertible competitors to state-sponsored currencies.
Keywords: currency, digitization, platforms, monetary economics
JEL Classification: D42, E4, L51
Suggested Citation: Suggested Citation
Gans, Joshua S. and Halaburda, Hanna, Some Economics of Private Digital Currency (July 23, 2013). "Economic Analysis of the Digital Economy," A. Goldfarb, S. Greenstein and C. Tucker (eds), The University of Chicago Press, 2015, Rotman School of Management Working Paper No. 2297296, Available at SSRN: https://ssrn.com/abstract=2297296 or http://dx.doi.org/10.2139/ssrn.2297296
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