Should All Blockchain-Based Digital Assets Be Classified Under the Same Asset Class?

Voraprapa Nakavachara, Tanapong Potipiti and Thanawan Lertmongkolnam

No 113, PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research

Abstract: The literature is well aware that blockchain-based digital assets would constitute a new asset class. However, it has been rather silent about the distinction among them. This paper discusses the digital tokens' differences and similarities by their (i) creation and initial distribution; (ii) intended properties; (iii) actual usage; and (iv) behaviors. Although the digital tokens are indistinguishable in some aspects, they differ in the way they are created and initially distributed. Some of them have distinguishable risk and return profiles. Therefore, we take a view that the digital tokens take (or will take) different roles in the financial systems; should be classified under different asset classes; and should be subject to different sets of regulations (although some may overlap).

Keywords: Blockchain; Cryptocurrency; Initial Coin Offering; Digital Tokens (search for similar items in EconPapers)
JEL-codes: G12 G32 O31 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2019-08
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