Eternal Coins? Control And Regulation Of Alternative Digital Currencies

Michael Mainelli and Matthew Leitch ()
Additional contact information
Matthew Leitch: Z/Yen Group, Postal: 41 Lothbury, London EC2R 7HG, https://www.zyen.com/

Journal of Financial Transformation, 2021, vol. 52, 152-157

Abstract: The rise and scams of cryptocurrencies have attracted much public, academic, and economic attention. While most cryptocurrencies have already failed, less attention has been given to the long-term regulation of those that might be successful, all of which purport to be 'eternal' stores of value or mediums of exchange. Now is a good time to review this experience and draw lessons for regulators, investors, and promoters interested in better management of risk around alternative currencies, and cryptocurrencies in particular. This paper concludes that conventional risk control concerns are relevant even when a technology is novel. The typical choice of blockchain technology with proof-of-work all but guarantees that efficiency concerns are material, and that the purely digital nature of cryptocurrencies offers opportunities for regulators to insist on comparison of outcomes with simulation modeling as one basis for regulatory control.

Keywords: cryptocurrency; controls; regulation; modelling; money supply (search for similar items in EconPapers)
JEL-codes: E47 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:ris:jofitr:1663

Access Statistics for this article

Journal of Financial Transformation is currently edited by Prof. Shahin Shojai

More articles in Journal of Financial Transformation from Capco Institute 77 Water Street, 10th Floor, New York NY 10005.
Bibliographic data for series maintained by Prof. Shahin Shojai ( this e-mail address is bad, please contact ).