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Cash, crime, and cryptocurrencies

Author

Listed:
  • Hendrickson, Joshua R.
  • Luther, William J.

Abstract

In The Curse of Cash, Kenneth Rogoff lists reductions in criminal activity and tax evasion among the primary benefits of eliminating cash. We maintain that, to the extent that individuals are interested in purchasing illicit goods and services or evading taxes, eliminating cash will encourage them to switch to close substitutes. Hence, governments intent on realizing the benefits cited by Rogoff would not merely need to eliminate cash. They would also need to ban alternatives. This is especially relevant given the proliferation of cryptocurrencies, which provide a fair degree of anonymity for users.

Suggested Citation

  • Hendrickson, Joshua R. & Luther, William J., 2022. "Cash, crime, and cryptocurrencies," The Quarterly Review of Economics and Finance, Elsevier, vol. 85(C), pages 200-207.
    • Handle: RePEc:eee:quaeco:v:85:y:2022:i:c:p:200-207
    DOI: 10.1016/j.qref.2021.01.004
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    References listed on IDEAS

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    21. William J. Luther, 2018. "Is Bitcoin Intrinsically Worthless?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 33(Spring 20), pages 31-45.
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    Cited by:

    1. Rainone, Edoardo, 2023. "Tax evasion policies and the demand for cash," Journal of Macroeconomics, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    Bitcoin; Cash; Crime; Criminal activity; Cryptocurrency; Currency; Money; Money matching; Political economy; Tax; Taxation; Tax evasion;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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