Banking Systems in an Economy Dominated by Cryptocurrencies

16 Pages Posted: 24 Oct 2016

See all articles by Kartik Hegadekatti

Kartik Hegadekatti

DoPT,Government of India

Yatish S G

Government of India, Ministry of Railways

Date Written: October 22, 2016

Abstract

In this paper, we analyse the workings of commercial banks in a scenario where crypto-currencies are the mainstream bills of exchange. We start by explaining the concept of cryptocurrencies (also referred to as cryptocoins in this paper). Then we discuss the concept of Regulated and Sovereign Backed Cryptocurrencies (RSBCs). Later on, we envisage a scenario where cryptocoins are the main media of exchange. The banking aspects of Paper money, Bitcoins and RSBCs are then deliberated. We analyse the interplays between Banking and various currency formats. Finally, the paper concludes as to which currency is best suited to be the mainstream bill of exchange.

Keywords: Banking, Cryptocurrencies, Bitcoin, Blockchain

JEL Classification: E51, E52, E58, F33, G18, G21, O38

Suggested Citation

Hegadekatti, Kartik and S G, Yatish, Banking Systems in an Economy Dominated by Cryptocurrencies (October 22, 2016). Available at SSRN: https://ssrn.com/abstract=2857490 or http://dx.doi.org/10.2139/ssrn.2857490

Kartik Hegadekatti (Contact Author)

DoPT,Government of India ( email )

DoPT,North Block
New Delhi, Delhi 110001
India
+91-9483715544 (Phone)

HOME PAGE: http://hegadekatti.blogspot.in/

Yatish S G

Government of India, Ministry of Railways ( email )

1 Floor, Operations Division
DRM Office, Next to City Railway Station
BANGALORE, KARNATAKA 560023
India
9886601577 (Phone)
08022876111 (Fax)

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