Money, Bitcoin, and Monetary Policy

【Author】 Kang, Kee-Youn; Lee, Seungduck

【Source】JOURNAL OF MONEY CREDIT AND BANKING

【影响因子】1.963

【Abstract】A search-theoretic model is constructed, where money and Bitcoin can be used as mediums of exchange. We investigate how each currency facilitates transactions and how they compete with each other. Quantitative analysis shows that welfare in an economy with both money and Bitcoin is lower than in a money-only economy due to congestions in the confirmation of Bitcoin transactions and that the welfare gap between the two economies expands as inflation rises. Moreover, an increase in transaction fees for Bitcoin can increase welfare by reducing inefficient Bitcoin transactions.

【Keywords】money; cryptocurrency; bitcoin; double spending; blockchain; monetary policy

【发表时间】

【收录时间】2022-11-10

【文献类型】理论模型

【主题类别】

区块链治理-法律治理-数字货币监管