The K-Y Paradox: Problems in Creating a Centralised Sovereign Backed Cryptocurrency on a Decentralised Platform

7 Pages Posted: 6 Apr 2017

Date Written: March 29, 2017

Abstract

Cryptocurrency networks and Blockchains are decentralized systems, functioning on distributed consensus. Fiat currencies on the other hand are issued, maintained and supervised by a sovereign central authority. RSBCs are Regulated And Sovereign Backed Cryptocurrencies (based on the K-Y Protocol) i.e. they are essentially decentralized cryptocurrencies floated by a central (sovereign) authority; it presents a paradox; known as the K-Y paradox. This paper explores the various dimensions of the K-Y paradox and its resolution.

Keywords: K-Y Protocol, blockchain, cryptocurrency, bitcoin

JEL Classification: C88, D02, E42, E51, E52

Suggested Citation

Hegadekatti, Kartik, The K-Y Paradox: Problems in Creating a Centralised Sovereign Backed Cryptocurrency on a Decentralised Platform (March 29, 2017). Available at SSRN: https://ssrn.com/abstract=2942914 or http://dx.doi.org/10.2139/ssrn.2942914

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/

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