World Economics 20(4) (2019) 151-175

33 Pages Posted: 4 Sep 2019 Last revised: 29 Jan 2020

See all articles by Zura Kakushadze

Zura Kakushadze

Quantigic Solutions LLC; Free University of Tbilisi

Willie Yu

Duke-NUS Medical School - Centre for Computational Biology

Date Written: August 28, 2019


We discuss the idea of a purely algorithmic universal world iCurrency set forth in: and expanded in: in light of recent developments, including Libra. Is Libra a contender to become iCurrency? Among other things, we analyze the Libra proposal, including the stability and volatility aspects, and discuss various issues that must be addressed. For instance, one cannot expect a cryptocurrency such as Libra to trade in a narrow band without a robust monetary policy. The presentation in the main text of the paper is intentionally nontechnical. It is followed by an extensive appendix with a mathematical description of the dynamics of (crypto)currency exchange rates in target zones, mechanisms for keeping the exchange rate from breaching the band, the role of volatility, etc.

Keywords: cryptocurrency, numeraire, currency, supply, demand, Libra, volatility, stability, FX, target zone, Brownian motion, drift, reflecting barriers, government, HKD, USD, EUR, JPY, monetary authority, currency board, reserve, Bitcoin, stablecoin, blockchain, trading, finance, carry trade, interest rate

JEL Classification: G00, G10, G13, G15, G18, G21, G23, G28, C22, E40, E42, E43, E50, E52, E58, F31, F33, F65

Suggested Citation

Kakushadze, Zura and Yu, Willie, iCurrency? (August 28, 2019). World Economics 20(4) (2019) 151-175, Available at SSRN: or

Zura Kakushadze (Contact Author)

Quantigic Solutions LLC ( email )

680 E Main St #543
Stamford, CT 06901
United States
6462210440 (Phone)
6467923264 (Fax)


Free University of Tbilisi ( email )

Business School and School of Physics
240, David Agmashenebeli Alley
Tbilisi, 0159

Willie Yu

Duke-NUS Medical School - Centre for Computational Biology ( email )

8 College Road
Singapore, 169857

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