Crypto, Corruption, and Capital Controls: Cross-Country Correlations

Marwa Alnasaa, Nikolay Gueorguiev, Jiro Honda, Eslem Imamoglu, Paolo Mauro, Keyra Primus and Dmitriy Rozhkov

No 2022/060, IMF Working Papers from International Monetary Fund

Abstract: Empirical investigation of the factors underlying the growing usage of crypto-assets is in its infancy, owing to data limitations. In this paper, we present a simple cross-country analysis drawing on recently released survey-based data. We explore the correlation of crypto-asset usage with indicators of corruption, capital controls, a history of high inflation, and other factors. We find that crypto-asset usage is significantly and positively associated with higher perception of corruption and more intensive capital controls. Notwithstanding the data limitations, the results support the case for regulating crypto-assets, including know-your-customer approaches, as opposed to taking a laissez-faire stance.

Keywords: cypto-assets; cryptocurrency; corruption; capital controls; crypto-asset usage; Pairwise correlation; data limitation; capital control; crypto-asset adoption; capital openness; Capital controls; Virtual currencies; Corruption; Global (search for similar items in EconPapers)
Pages: 19
Date: 2022-03-25
New Economics Papers: this item is included in nep-fdg, nep-mon and nep-pay
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