Adoption of a privately-issued digital currency can reduce social welfare, researchers find

Digital currency

An economy with fiat money and a privately issued digital currency, such as bitcoin, used simultaneously can lead to monetary policy co-ordination issues, a team of researchers at the Bank of Canada find.

Consequently, it may be beneficial to have a central bank digital currency in order to achieve the benefits digital currencies have in certain transactions while maintaining control over monetary policy, the researchers conclude.

In the paper, Yu Zhu and Scott Hendry analyse the social

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: