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

Rotman School of Management Working Paper No. 2297296

28 Pages Posted: 24 Jul 2013 Last revised: 4 Jul 2019

See all articles by Joshua S. Gans

Joshua S. Gans

University of Toronto - Rotman School of Management; NBER

Hanna Halaburda

New York University (NYU) - Leonard N. Stern School of Business

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

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

Joshua S. Gans (Contact Author)

University of Toronto - Rotman School of Management ( email )

Canada

HOME PAGE: http://www.joshuagans.com

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Hanna Halaburda

New York University (NYU) - Leonard N. Stern School of Business ( email )

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New York, NY NY 10012
United States

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