The Economics of Digital Currencies

11 Pages Posted: 23 Sep 2014

See all articles by Robleh Ali

Robleh Ali

Bank of England

John Barrdear

Bank of England

Roger Clews

Bank of England

James Southgate

Bank of England

Date Written: September 16, 2014

Abstract

Although digital currencies could, in theory, serve as money for anybody with an internet-enabled device, at present they act as money only to a limited extent and only for relatively few people. The economics of the schemes as currently designed, both in terms of individuals’ incentives and at a macroeconomic level, pose significant challenges to their widespread adoption. Digital currencies do not currently pose a material risk to monetary or financial stability in the United Kingdom. The Bank continues to monitor developments in this area.

Suggested Citation

Ali, Robleh and Barrdear, John and Clews, Roger and Southgate, James, The Economics of Digital Currencies (September 16, 2014). Bank of England Quarterly Bulletin 2014 Q3. Available at SSRN: https://ssrn.com/abstract=2499418

Robleh Ali (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

John Barrdear

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Roger Clews

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

James Southgate

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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