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Digital money

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Abstract

We provide a brief overview of the most popular forms of money available to the general public today, with a particular emphasis on digital money. We contrast current monetary arrangements with privately issued crypto coins, such as Bitcoin, and argue why the latter will likely never be able to perform the economic functions of money well. We relate our discussion to the current international debate on the potential introduction of central bank-issued digital currencies as a new form of digital money.

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  • Paul Pichler & Alexander Schierlinger-Brandmayr & Martin Summer, 2018. "Digital money," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3/18, pages 23-35.
    • Handle: RePEc:onb:oenbmp:y:2018:i:q3/18:b:2
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    File URL: https://www.oenb.at/dam/jcr:ec538ddf-a492-41bc-9e2c-7585878c51b1/04_MOP_Q3_18-pichler.pdf
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    References listed on IDEAS

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    1. Ben Fung & Hanna Halaburda, 2016. "Central Bank Digital Currencies: A Framework for Assessing Why and How," Discussion Papers 16-22, Bank of Canada.
    2. Martin Hellwig, 2018. "Bargeld, Giralgeld, Vollgeld: Zur Diskussion um das Geldwesen nach der Finanzkrise," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2018_10, Max Planck Institute for Research on Collective Goods.
    3. Eric Budish, 2018. "The Economic Limits of Bitcoin and the Blockchain," NBER Working Papers 24717, National Bureau of Economic Research, Inc.
    4. Jobst, Clemens & Stix, Helmut, 2017. "Doomed to Disappear? The Surprising Return of Cash Across Time and Across Countries," CEPR Discussion Papers 12327, C.E.P.R. Discussion Papers.
    5. Weber,Beat, 2018. "Democratizing Money?," Cambridge Books, Cambridge University Press, number 9781107195813.
    6. Walter Engert & Ben Fung, 2017. "Central Bank Digital Currency: Motivations and Implications," Discussion Papers 17-16, Bank of Canada.
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    More about this item

    Keywords

    digital money; Bitcoin; blockchain; digitalization;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other

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