Centrally Banked Cryptocurrencies

Current cryptocurrencies, starting with Bitcoin, build a decentralized blockchain-based transaction ledger, maintained through proofs-of-work that also generate a monetary supply. Such decentralization has benefits, such as independence from national political control, but also significant limitations in terms of scalability and computational cost. We introduce RSCoin, a cryptocurrency framework in which central banks maintain complete control over the monetary supply, but rely on a distributed set of authorities, or mintettes, to prevent double-spending. While monetary policy is centralized, RSCoin still provides strong transparency and auditability guarantees. We demonstrate, both theoretically and experimentally, the benefits of a modest degree of centralization, such as the elimination of wasteful hashing and a scalable system for avoiding double-spending attacks.Comment: 15 pages, 4 figures, 2 tables in Proceedings of NDSS 201

Digital Currency in Indonesia (Prospects and Challenges in Inclusive Financial Reviews)

Who controls global finance? Digitalization is a necessity that will disrupt every area of human life. Money is like 'blood' in the economy. If the currency is disrupted then all areas of human life are also disrupted. Private versions of cryptocurrencies have disrupted the global financial system controlled by Central Banks. Central Bank Digital Currency (CBDC) is the currency version of the Central Bank. Using primary data and reference studies on Digital Currency. Several empirical challenges and opportunities in adopting digital currencies such as increasing the effectiveness, efficiency, and accessibility of individuals to financial service facilities. The right, reliable and trusted Digital Currency model can increase the utility of transactions for individuals and the economy as a whole. Some of the main challenges of digital infrastructure, security systems, Integration, Innovation of new services, disintermediation, transparency and efficiency. The ability to overcome these challenges can increase financial sector

The Cryptoeconomy: October 2014

https://digitalcommons.nyls.edu/center_for_business_and_financial_law_projects/1008/thumbnail.jp

The Cryptoeconomy: October 2014

https://digitalcommons.nyls.edu/center_for_business_and_financial_law_projects/1008/thumbnail.jp

Cryptocurrencies in Modern Finance: A Literature Review

The focus on cryptocurrencies in the finance and banking sectors is gaining momentum. In this paper, we investigate the role of cryptocurrencies in modern finance. We apply a narrative literature review method to synthesize prior research and draw insights into the opportunities and challenges of leveraging cryptocurrencies. The results indicate that cryptocurrencies offer businesses and individuals’ lower transaction costs, higher efficiencies, increased security and privacy, meaningful diversification benefits, alternative financing solutions, and financial inclusion.Challenges exist related to the integration of cryptocurrencies in modern finance. These include the lack of regulatory standards, the risk of criminal activity, high energy and environmental costs, regulatory bans and usage restrictions, security and privacy concerns, and the high volatility of cryptocurrencies.The current review is useful for scholars and managers, including those seeking to have a more balanced understanding of these emerging financial instruments.JEL Classification: E42, F30, F65, G21, G23How to Cite:Rejeb, A., Rejeb, K., & Keogh, J. G. (2021). Cryptocurrencies in Modern Finance: a Literature Review. Etikonomi, 20(1), 93 – 118. https://doi.org/10.15408/etk.v20i1.16911

Constitutions and Blockchains:Competitive Governance of Fundamental Rule Sets

In the context of private ordering—where rule sets are relatively fluid, centrally controlled, and exist in the shadow of law and regulation—developing generalizable insights about comparatively superior governance mechanisms is difficult. I shed light on this question by characterizing cryptocurrency blockchains as a type of constitutional rule set that both defines and legitimizes the activities supported by the underlying distributed ledger technology. More specifically, I argue that cryptocurrency blockchains have led to new forms of competition in private governance, which include exit costs and citizenship rules as important competitive margins. My analysis not only identifies the choices in constitutional governance to which proposed cryptocurrency blockchain changes are analogous, but it also highlights the competitive gains expected to result from these changes. I further consider both the trade-offs in governance created by competition between cryptocurrency blockchains and the surprising ways in which these unique competitive margins may influence downstream outcomes