Banking Systems in an Economy Dominated by Cryptocurrencies

Kartik Hegadekatti and Yatish S G

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we analyse the workings of commercial banks in a scenario where crypto-currencies are the mainstream bills of exchange. We start by explaining the concept of cryptocurrencies (also referred to as cryptocoins in this paper). Then we discuss the concept of Regulated and Sovereign Backed Cryptocurrencies (RSBCs). Later on, we envisage a scenario where cryptocoins are the main media of exchange. The banking aspects of Paper money, Bitcoins and RSBCs are then deliberated. We analyse the interplays between Banking and various currency formats. Finally, the paper concludes as to which currency is best suited to be the mainstream bill of exchange.

Keywords: Banking; Cryptocurrencies; Bitcoin; Blockchain (search for similar items in EconPapers)
JEL-codes: E51 E52 E58 F33 G18 G21 O38 (search for similar items in EconPapers)
Date: 2016-10-22, Revised 2016-10-24
New Economics Papers: this item is included in nep-ban, nep-mac, nep-mon and nep-pay
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Citations: View citations in EconPapers (1)

Published in Monetary Economics: Central Banks - Policies & Impacts eJournal 81.01(2016): pp. 1-16

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:82100

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