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The Blockchain Revolution: Decoding Digital Currencies

Author

Listed:
  • David Andolfatto
  • Fernando M. Martin

Abstract

Cryptocurrencies and decentralized finance have grown considerably since the publication of the white paper on bitcoin in 2009. This article presents an overview of cryptocurrencies, blockchain technology, and their applications, explaining the spirit of the enterprise and how it compares with traditional operations. We discuss money, digital money, and payments; cryptocurrencies, blockchain, and the double-spending problem of digital money; decentralized finance; and central bank digital currency.

Suggested Citation

  • David Andolfatto & Fernando M. Martin, 2022. "The Blockchain Revolution: Decoding Digital Currencies," Review, Federal Reserve Bank of St. Louis, vol. 104(3), pages 149-165, July.
    • Handle: RePEc:fip:fedlrv:94512
    DOI: 10.20955/r.104.149-65
    Note: This article is derived from an essay published in the 2021 annual report of the Federal Reserve Bank of St Louis: https://www.stlouisfed.org/annual-report/2021/essay.
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    References listed on IDEAS

    as
    1. Douglas W. Diamond & Philip H. Dybvig, 2000. "Bank runs, deposit insurance, and liquidity," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 24(Win), pages 14-23.
    2. David Andolfatto & Andrew Spewak, 2019. "Whither the Price of Bitcoin?," Economic Synopses, Federal Reserve Bank of St. Louis, issue 1, pages 1-2.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    blockchain; digital currencies; cryptocurrencies; decentralized finance; central bank digital currency;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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