The Denationalization of Money and Cryptocurrencies: Commonalities and Implications for the Global Economy

Abstract

The Denationalization of Money, a book by NobelPrize–winning economist F.A. Hayek, suggests abolishing the government's monopoly over fiat currency. Hayek believed that a single national currency and the central bank have a history of generating massive inflation and; therefore, unregulated private currencies can counteract such a governmental monopoly over the national currency. Cryptocurrencies (cryptocurrencies) are decentralized digital currencies built on blockchain technology that has the potential to reshape the global financial landscape and foster a more competitive and innovative monetary system. In this article, I examine some commonalities and implications of Hayek's theory on the role of money in the economy for the future of cryptocurrencies and the financial system. I also discuss the potential impact of the denationalization of money and cryptocurrencies on the global economic system.

Keywords: cryptocurrency, money, Hayek, denationalization, economy, inflation