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Archive » October 2021 » The economics of cryptocurrency

The economics of cryptocurrency

Paolo Savona
October 2021 - n. 10
Keywords: Monete digitali, contabilità decentrata, sistema dei pagamenti, regime monetario e finanziario, regolazione e controllo
Jel codes: E40, E42

The spread of cryptocurrencies and the widespread use of blockchain have caused a significant change in the institutional set-up of the markets, whose necessary re-regulation is slow to make its way. The architecture of the securities market (rules, bodies and policies) sees the emergence of a triple form of fiat money: traditional monetary base, Cbdc and private cryptocurrency, in particular stable coins. Technology platforms that offer custody, management and conversion services of virtual products quickly and less costly have competed with traditional banks and financial intermediaries. The supervisory authorities will have to adapt their activity to the progressive transfer of the securities market activity to the infosphere. Monetary policy and fiscal policy will have to take account of this new reality if they are to protect the objectives assigned to them.

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