Some Economics of Private Digital Currency

28 Pages Posted: 24 Jul 2013

See all articles by Joshua S. Gans

Joshua S. Gans

University of Toronto - Rotman School of Management; NBER

Hanna Halaburda

Bank of Canada; New York University (NYU); CESifo (Center for Economic Studies and Ifo Institute)

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). 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

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Hanna Halaburda

Bank of Canada ( email )

234 Wellington Street
Ontario, Ottawa K1A 0G9
Canada

New York University (NYU) ( email )

Bobst Library, E-resource Acquisitions
20 Cooper Square 3rd Floor
New York, NY 10003-711
United States

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Munich
Germany

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