What Is Really New about Cryptocurrencies?
47 Pages Posted: 23 Oct 2019 Last revised: 10 Mar 2021
Date Written: March 5th, 2021
Abstract
Cryptocurrencies and stablecoins are potentially transformative innovations. Their emergence has prompted active debate of the nature of money and the relationship between its different forms. We propose a conceptual framework for understanding these developments and their practical and policy implications. Our objective is to provide a more complete analysis than other recent similar efforts, incorporating insights from both historical and contemporary arrangements and from the history of monetary thought. One key finding is the necessity of distinguishing arrangements for (i) recording and transferring ownership; and (ii) supporting monetary value, which we capture in two separate visualisations. Another is the possibility of delegated audit and control of financial assets, a potentially powerful but neglected feature of the new technologies.
Keywords: Money, Cryptocurrencies, Central bank digital currencies, Bitcoin
JEL Classification: B22, E40, E41 E42, E50, E51, E52, E58, E59, E61
Suggested Citation: Suggested Citation