Kahn, Charles M.; Rivadeneyra, Francisco; Wong, Tsz-Nga - 2021 - Last updated: January 28, 2021
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...