Economics Beyond Financial Intermediation: Digital Currencies’ Potential for Growth, Poverty Alleviation and International Development
Ammous, Saifedean. 2015. "Economics beyond Financial Intermediation: Digital Currencies' Possibilities for Growth, Poverty Alleviation, and International Development." The Journal of Private Enterprise, 30(3): 19-50.
32 Pages Posted: 1 Sep 2016
Date Written: September 1, 2015
Bitcoin is the first technology for the final transfer of digital goods online, facilitating instant global payments without intermediation. Bitcoin’s operation is based on a distributed, decentralized, and transparent asset ledger that acts as an ongoing chain record of all transactions. The system issues coins to reward those who contribute processing power to the network’s operation. The possibilities created by this innovation are significant for the world’s poor, who could skip traditional political and financial institutions and move to digital currencies in the same way they have gone straight to using mobile phones and skipped landline telephones.
Keywords: bitcoin, innovation, finance, development
JEL Classification: F30, O31
Suggested Citation: Suggested Citation