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Making it through the (crypto) winter: facts, figures and policy issues

Author

Listed:
  • Guerino Ardizzi

    (Bank of Italy)

  • Marco Bevilacqua

    (Bank of Italy)

  • Emanuela Cerrato

    (Bank of Italy)

  • Alberto Di Iorio

    (Bank of Italy)

Abstract

The prices of crypto-assets have risen very steeply in recent years, attracting the interest of retail and institutional investors. More recently, the market has experienced a sharp decline in prices, also influenced by idiosyncratic events and tighter global fi nancial conditions. Starting from the main events that unfolded in the crypto-asset market in 2022, this paper examines the challenges regulation faces, as well as the drivers of the most recent regulatory developments, and then highlights the remaining open issues.

Suggested Citation

  • Guerino Ardizzi & Marco Bevilacqua & Emanuela Cerrato & Alberto Di Iorio, 2023. "Making it through the (crypto) winter: facts, figures and policy issues," Temi di discussione (Economic working papers) 38, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:misp_038_23
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/mercati-infrastrutture-e-sistemi-di-pagamento/approfondimenti/2023-038/N.38-MISP.pdf
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    References listed on IDEAS

    as
    1. Fabian Schär, 2021. "Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets," Review, Federal Reserve Bank of St. Louis, vol. 103(2), pages 153-174, April.
    2. Raphael A. Auer, 2022. "Embedded Supervision: How to Build Regulation into Decentralised Finance," CESifo Working Paper Series 9771, CESifo.
    3. Jovanović, Miroslav N., 2022. "Economic Sanctions: Disappointing Old Wine in New Bottles," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 75(4), pages 545-576.
    4. Oscar Borgogno, 2022. "Making Decentralized Autonomous Organizations (DAOs) fit for legal life: mind the gap," Questioni di Economia e Finanza (Occasional Papers) 718, Bank of Italy, Economic Research and International Relations Area.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    crypto-asset; Bitcoin; blockchain; regulation; decentralization;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • K29 - Law and Economics - - Regulation and Business Law - - - Other
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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