A Primer on Bitcoin Cross-Border Flows: Measurement and Drivers
41 Pages Posted: 16 Apr 2024
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A Primer on Bitcoin Cross-Border Flows: Measurement and Drivers
Date Written: April 10, 2024
Abstract
The rapid growth of crypto assets raises important questions about their cross-border usage.
To gain a better understanding of cross-border Bitcoin flows, we use raw data covering both
on-chain (on the Bitcoin blockchain) and off-chain (outside the Bitcoin blockchain) transactions
globally. We provide a detailed description of available methodologies and datasets, and discuss
the crucial assumptions behind the quantification of cross-border flows. We then present novel
stylized facts about Bitcoin cross-border flows and study their global and domestic drivers.
Bitcoin cross-border flows respond differently than capital flows to traditional drivers of capital
flows, and differences appear between on-chain and off-chain Bitcoin cross-border flows. Off-chain
cross-border flows seem correlated with incentives to avoid capital flow restrictions.
Keywords: Crypto assets, Bitcoin, Cross-border flows, Capital flows
JEL Classification: E42, E51, E58, F21, F32, F38
Suggested Citation: Suggested Citation