Cryptocurrencies, Currency Competition, and the Impossible Trinity

We analyze a two-country economy with complete markets, featuring two national currencies as well as a global (crypto)currency. If the global currency is used in both countries, the national nominal interest rates must be equal and the exchange rate between the national currencies is a risk-adjusted martingale. We call the...

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Some simple Bitcoin Economics

In a novel model of an endowment economy, we analyze coexistence and competition between traditional fiat money (Dollar) and another intrinsically worthless medium of exchange, not controlled by a central bank, such as Bitcoin. Agents can trade consumption goods in either currency or hold on to currency for speculative purposes....

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Central Bank Digital Currency: Central Banking For All?

The introduction of a central bank digital currency (CBDC) allows the central bank to engage in large-scale intermediation by competing with private financial intermediaries for deposits. Yet, since a central bank is not an investment expert, it cannot invest in long-term projects itself, but relies on investment banks to do...

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Videos of Tokenomics 2019

Have a look at the videos of Tokenomics 2019, International Conference on Blockchain Economics, Security and Protocols is an international forum for theory, design, analysis, implementation and applications of blockchains and smart contracts. Original interdisciplinary works exploring the conjunction of economic concerns with distributed systems, networks and system security are particularly encouraged.

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