Which Kind of Blockchain Application for Local Complementary Currencies?

Sothearath Seang and Dominique Torre ()

Revue économique, 2021, vol. 72, issue 4, 667-685

Abstract: This paper examines the application of the blockchain technology to local complementary currencies through two consensus protocols: the Proof of Work (PoW) and the Proof of Stake (PoS). Given the increasing digitization of local currencies, and the challenges affecting their management and operation, we analyze the potential of a technological solution in addressing these issues. The case of local currencies with a blockchain is different from the case of cryptocurrencies as there is no speculation possible due to the one-to-one fixed exchange rate with the legal tender, and the geographical limit of use for local currencies. In this context, the blockchain offers different services and has different properties. The choice of the right validation process matters in this case, but also incentives of miners and validators to participate in the process. JEL Codes: E42, R5.

Keywords: digitization; heterogeneous agents; community currencies (search for similar items in EconPapers)
JEL-codes: E42 R5 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Working Paper: Which Kind of Blockchain Application for Local Complementary Currencies? (2020)
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