Does monetary policy fuel bitcoin demand? Event-study evidence from emerging markets
Journal of International Financial Markets, Institutions and Money, 2022, vol. 77, issue C
Despite mounting central bank concerns over cryptocurrency adoption, there is little evidence that monetary policy compels national currency holders to consider decentralized virtual alternatives. Exploiting cross-country variation in prescheduled announcement timing, I isolate how monetary policy announcements affect local Bitcoin demand using an event-study design on a panel of 26 emerging economies. I find that monetary policy announcements increase both measures of local Bitcoin attention and local Bitcoin trade volume, but only on days when the public is abnormally attentive to inflation. These announcement-induced Bitcoin trading spikes are only significant in countries that are not normally accustomed to inflation risk.
Keywords: Bitcoin; Monetary policy; Emerging economies; Event study; Investor attention (search for similar items in EconPapers)
JEL-codes: C23 E41 E52 G14 G15 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:77:y:2022:i:c:s1042443121001931
Access Statistics for this article
Journal of International Financial Markets, Institutions and Money is currently edited by I. Mathur and C. J. Neely
More articles in Journal of International Financial Markets, Institutions and Money from Elsevier
Bibliographic data for series maintained by Catherine Liu ().