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Digital currencies store balances in anonymous electronic addresses. We analyze the tradeoffs between the safety and convenience of aggregating balances in addresses, electronic wallets and banks. In our model, agents balance the risk of theft of a large account with the cost to safeguarding a...
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We use a simple model to study whether private payment systems based on bank deposits can provide the optimal level of safety. In the model, bank deposits backed by projects are subject to default risk that can be mitigated by a depositor's ex ante and ex post monitoring. Safe payment...
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A well-functioning monetary system is characterized by public and private forms of money that exchange at par as value flows freely between them. This is essential for efficient transacting and contracting in a market economy. A relevant retail public money - whether in the form of cash, a...
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-- Chapter 7: Digital currencies’ implications for the monetary system and financial stability -- Chapter 8: Fintech and …This book provides a thorough introduction of fintech in general and cryptocurrencies in particular. It describes the … doing so, the book elaborates on the interrelationship between issues such as fintech and cryptocurrencies, central banks …
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