The New Money: The Utility of Cryptocurrencies and the Need for a New Monetary Policy

57 Pages Posted: 18 Jun 2020

See all articles by David Kuo Chuen Lee

David Kuo Chuen Lee

Singapore University of Social Sciences (SUSS); National Univeristy of Singapore; Shanghai University of Finance and Economics

Ernie G. S. Teo

NUS Business School

Date Written: May 23, 2020

Abstract

Since its inception in 2008, cryptocurrencies are gaining adoption globally. Even though its utility may vary, the primary purpose of cryptocurrencies is to provide some form of payment (or medium of exchange) in the digital world. As more use cases arise from the industry, cryptocurrencies and blockchain are no longer a niche topic. Educational institutions are introducing it into their curriculum, and governments are talking about it in parliament. In particular, governments are keen to determine if the underlying technologies can form the fundamentals to issue a Central Bank issued Digital Currency (CBDC). Will these forms of currency become the “New Money”? This paper sets out to explore the utility of cryptocurrencies and CBDC, their implications on the economy and the government’s ability to use monetary policy. We examine and compare the approaches to CBDCs suggested by various governments.

Keywords: Central Bank Digital Currency, Cryptocurrency, Payment System, Distributed Ledger Technology, Monetary Policy, DCEP, Libra

Suggested Citation

Lee, David Kuo Chuen and Teo, Ernie G. S., The New Money: The Utility of Cryptocurrencies and the Need for a New Monetary Policy (May 23, 2020). Available at SSRN: https://ssrn.com/abstract=3608752 or http://dx.doi.org/10.2139/ssrn.3608752

David Kuo Chuen Lee (Contact Author)

Singapore University of Social Sciences (SUSS) ( email )

461 Clementi Road
Singapore, 599491
Singapore

National Univeristy of Singapore ( email )

1 Business Link
Singapore, 117592
Singapore

Shanghai University of Finance and Economics ( email )

Shanghai, 200433
China

Ernie G. S. Teo

NUS Business School ( email )

15 Kent Ridge Drive
119245
Singapore

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
300
Abstract Views
989
rank
110,599
PlumX Metrics