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
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