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Regulating Digital Currencies: Bringing Bitcoin within the Reach of the IMF
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The authors argued that the International Monetary Fund, the institution responsible for coordinating the stability of foreign exchange rates, is ill-equipped to handle the widespread use of Bitcoins into the foreign exchange market and highlighted the inability of the Fund to intervene in the event of a speculative attack on a currency by Bitcoin users.Abstract:
This paper examines the potentially destabilizing effects of emerging digital currencies on the international foreign currency exchange. Specifically, it examines “Bitcoin,” a decentralized, partially anonymous, and largely unregulated digital currency that has become particularly popular in the last few years. The paper argues that the International Monetary Fund, the institution responsible for coordinating the stability of foreign exchange rates, is ill-equipped to handle the widespread use of Bitcoins into the foreign exchange market. It highlights the inability of the Fund to intervene in the event of a speculative attack on a currency by Bitcoin users. The paper concludes by suggesting two interpretations of the Fund’s incorporating document, the Articles of Agreement, which would allow it to intervene in the event of such an attack.read more
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Speculative bubbles in Bitcoin markets? An empirical investigation into the fundamental value of Bitcoin
Eng-Tuck Cheah,John Fry +1 more
TL;DR: In this article, economic and econometric modelling of Bitcoin prices is presented. And they show that Bitcoin exhibits speculative bubbles and find empirical evidence that the fundamental price of Bitcoin is zero.
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Bitcoins as an investment or speculative vehicle? A first look
C. Baek,Matt Elbeck +1 more
TL;DR: In this paper, the authors use Bitcoin and S&P 500 Index daily return data to examine relative volatility using detrended ratios and then model Bitcoin market returns with selected economic variables to study the drivers of Bitcoin market return.
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Negative bubbles and shocks in cryptocurrency markets
John Fry,Eng-Tuck Cheah +1 more
TL;DR: In this article, the authors draw upon the close relationship between statistical physics and mathematical finance to develop a suite of models for financial bubbles and crashes, which allow for a probabilistic and statistical formulation of econophysics models closely linked to mainstream financial models.
Journal ArticleDOI
Bitcoin, Blockchain and Fintech: a systematic review and case studies in the supply chain
TL;DR: The applications, the benefits/value, and the challenges/issues of Bitcoin, Blockchain and Fintech in several industries are brought out and the research methodologies/approaches used during such research are presented.
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Cryptocurrencies and Business Ethics
Claus Dierksmeier,Peter Seele +1 more
TL;DR: The impact of “blockchain technology” on the nature of financial transactions from a business ethics perspective is addressed and a 3 × 3 framework for current debates on the ethics of cryptocurrencies is constructed.
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