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This paper provides a systematic evaluation of the different types of digital currencies. We express skepticism regarding centralized digital currencies and therefore focus our economic analysis on private digital currencies. Specifically, we highlight the potential for private digital...
Persistent link: https://www.econbiz.de/10014104308
We consider how a central bank digital currency (CBDC) could transform all aspects of the monetary system and facilitate the systematic and transparent conduct of monetary policy. In particular, we find that CBDC can serve as a practically costless medium of exchange, secure store of value, and...
Persistent link: https://www.econbiz.de/10012949410
'Notice and Choice' has been a mainstay of policies designed to safeguard consumer privacy. This paper investigates distortions in consumer behavior when faced with notice and choice which may limit the ability of consumers to safeguard their privacy using field experiment data from the MIT...
Persistent link: https://www.econbiz.de/10012954461
there is a strong time-series momentum effect and that proxies for investor attention strongly forecast cryptocurrency …We establish that the risk-return tradeoff of cryptocurrencies (Bitcoin, Ripple, and Ethereum) is distinct from those … cryptocurrency returns can be predicted by factors which are specific to cryptocurrency markets. Specifically, we determine that …
Persistent link: https://www.econbiz.de/10012913389
Initial coin offerings (ICOs) have emerged as a new mechanism for entrepreneurial finance, with parallels to initial public offerings, venture capital, and pre-sale crowdfunding. In a sample of more than 1,500 ICOs that collectively raise $12.9 billion, we examine which issuer and ICO...
Persistent link: https://www.econbiz.de/10012915642
The amount of computational power devoted to anonymous, decentralized blockchains such as Bitcoin's must simultaneously … particular, the model suggests that Bitcoin would be majority attacked if it became sufficiently economically important — e …
Persistent link: https://www.econbiz.de/10012916609
If the global economy encounters another severe adverse shock in coming years, will major central banks be able to provide sufficient monetary stimulus to preserve price stability and foster economic recovery? Our empirical analysis indicates that the Federal Reserve's QE3 program was not an...
Persistent link: https://www.econbiz.de/10012894443
Over time, there has been a tendency for political jurisdictions and residents to converge on a single currency. Monopoly over seigniorage is a source of political power and a valuable lifeline when sovereignty is threatened. Moreover a uniform currency, insofar as it is free of counterparty and...
Persistent link: https://www.econbiz.de/10012895472
) and another intrinsically worthless medium of exchange, not controlled by a central bank, such as Bitcoin. Agents can … inflation target, while Bitcoin mining is decentralized via proof-of-work. We analyze Bitcoin price evolution and interaction … between the Bitcoin price and monetary policy which targets the Dollar. We obtain a fundamental pricing equation, which in its …
Persistent link: https://www.econbiz.de/10012922218
This paper explores how entrepreneurs can use initial coin offerings — whereby they issue crypto tokens and commit to only accept those tokens as payment for their products — to fund venture start-up costs. We show that the ICO mechanism allows entrepreneurs to generate buyer competition for...
Persistent link: https://www.econbiz.de/10012924464