Cryptocurrencies: New Opportunities for Postal Financial Services

Christian Jaag and Christian Bach

No 52, Working Papers from Swiss Economics

Abstract: Contrary to traditional currencies, cryptocurrencies neither have physical form nor are they guaranteed or backed by any central authority. They simply attain value by usage and the confidence of those participating in the respective system. A crypto-paymentsystem is a technology which allows for payments between individuals digitally without relying on central institutions, intermediaries or further infrastructure as required for conventional payment systems. While its legitimacy as currency has been questioned due to its high exchange rate volatility, the significant potential of the Bitcoin technology as a payment system is undeniable. As postal operators typically have a role as financial intermediaries and act in an inter-national and increasingly digital environment, crypto-paymentsystems may be of particular interest to them. In fact, as the post has a wide network of access points and is highly trusted by the general public, it may be well-suited to offer services which counter some disadvantages of crypto-paymentsystems and cryptocurrencies, while retain-ing the benefits of their technology. By turning to crypto-paymentsystems postal operators may extend their role as a financial intermediary with new domestic and interna-tional services. Furthermore, postal operators may even issue their own cryptocurrency to protect customers from the high exchange-rate volatility of cryptocurrencies.

Keywords: Postal Sector; Cryptocurrencies; Bitcoin; Financial Services; Financial Inclusion (search for similar items in EconPapers)
JEL-codes: L43 L51 (search for similar items in EconPapers)
Date: 2015-06
New Economics Papers: this item is included in nep-mon and nep-reg
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.swiss-economics.ch/RePEc/files/0052JaagBach.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chc:wpaper:0052

Access Statistics for this paper

More papers in Working Papers from Swiss Economics Contact information at EDIRC.
Bibliographic data for series maintained by Urs Trinkner ().