A Primer on Bitcoin Cross-Border Flows: Measurement and Drivers

41 Pages Posted: 16 Apr 2024

See all articles by Eugenio Cerutti

Eugenio Cerutti

International Monetary Fund (IMF); Johns Hopkins University

Jiaqian Chen

International Monetary Fund (IMF)

Martina Hengge

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

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

Cerutti, Eugenio and Chen, Jiaqian and Hengge, Martina, A Primer on Bitcoin Cross-Border Flows: Measurement and Drivers (April 10, 2024). Available at SSRN: https://ssrn.com/abstract=4790645 or http://dx.doi.org/10.2139/ssrn.4790645

Eugenio Cerutti (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street N.W.
Washington, DC 20431
United States

Johns Hopkins University ( email )

Baltimore, MD 21218
United States

Jiaqian Chen

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Martina Hengge

International Monetary Fund (IMF) ( email )

United States

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