How Do Private Digital Currencies Affect Government Policy?

22 Pages Posted: 20 Aug 2019 Last revised: 29 Aug 2019

See all articles by Max Raskin

Max Raskin

New York University School of Law

Fahad Saleh

McGill University - Desautels Faculty of Management

David Yermack

New York University (NYU) - Stern School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: August 16, 2019

Abstract

This paper provides a systematic evaluation of the different types of digital currencies. We express skepticism regarding centralized digital currencies and therefore focus our economic analysis on private digital currencies. Specifically, we highlight the potential for private digital currencies to improve welfare within an emerging market with a selfish government. In that setting, we demonstrate that a private digital currency not only improves citizen welfare but also encourages local investment and enhances government welfare.

Keywords: Cryptocurrency, Digital Currency, Bitcoin, Blockchain

JEL Classification: E42, F30, G18, O38

Suggested Citation

Raskin, Max and Saleh, Fahad and Yermack, David, How Do Private Digital Currencies Affect Government Policy? (August 16, 2019). Available at SSRN: https://ssrn.com/abstract=3437529 or http://dx.doi.org/10.2139/ssrn.3437529

Max Raskin (Contact Author)

New York University School of Law ( email )

40 Washington Square South
New York, NY 10012-1099
United States

Fahad Saleh

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada

David Yermack

New York University (NYU) - Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY 10012-1126
United States
212-998-0357 (Phone)
212-995-4220 (Fax)

HOME PAGE: http://www.stern.nyu.edu/~dyermack

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