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Sustainable development and cryptocurrencies as private money

Author

Listed:
  • John Vaz

    (Monash University)

  • Kym Brown

    (Monash University)

Abstract

Cryptocurrencies were initially promoted on their ability to operate in a fair and equitable manner free from financial institutions and governments. This paper evaluates sustainability issues facing cryptocurrencies in their functions as a form of private money. Specifically, we focus on their claims around inequality and poverty reduction using the United Nations Sustainability Development Goals framework. Our findings suggest that although the technologists believed they produced suitable alternatives to traditional money, there are a number of issues in regards to the sustainability of this form of finance. The major areas of the shortfall are around an energy usage perspective, the reward system for transactors to those with access to greater computer power (inequality) and issues over loss sharing when exchanges or user nodes are hacked and digital wallets are lost.

Suggested Citation

  • John Vaz & Kym Brown, 2020. "Sustainable development and cryptocurrencies as private money," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(1), pages 163-184, March.
    • Handle: RePEc:spr:epolin:v:47:y:2020:i:1:d:10.1007_s40812-019-00139-5
    DOI: 10.1007/s40812-019-00139-5
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    Cited by:

    1. Júlio Lobão, 2022. "Herding Behavior in the Market for Green Cryptocurrencies: Evidence from CSSD and CSAD Approaches," Sustainability, MDPI, vol. 14(19), pages 1-17, October.
    2. Douglas Cumming & Zachary Glatzer & Omrane Guedhami, 2023. "Institutions, digital assets, and implications for economic and financial performance," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(3), pages 487-513, September.
    3. Giancarlo Giudici & Alistair Milne & Dmitri Vinogradov, 2020. "Cryptocurrencies: market analysis and perspectives," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(1), pages 1-18, March.

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    More about this item

    Keywords

    Cryptocurrencies; Sustainability; Inequality;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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