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Money in the time of crypto

Author

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  • Bibi, Samuele

Abstract

This paper investigates the evolution of cryptocurrencies. By nature and essence, Bitcoin challenged and implicitly threatened central bank money and its role in the monetary system. Meanwhile, central banks have been studying cryptocurrencies and launched pilot projects on their own digital currency, the Central Bank Digital Currency. Until recently, most economists considered Bitcoin merely as a speculative asset; however, the El Salvador decision in 2021 to establish it as a legal tender (through the Bitcoin Law) questions the status quo perception of Bitcoin. Given El Salvador’s legal obligation by law of their acceptance, allowing tax payments to the government and debts to be settled using Bitcoin, the Bitcoin Law challenges the boundaries of money. In light of the El Salvador experience, we consider different perspectives on the nature of money, allowing us to reject or include Bitcoin inside the money spectrum.

Suggested Citation

  • Bibi, Samuele, 2023. "Money in the time of crypto," Research in International Business and Finance, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:riibaf:v:65:y:2023:i:c:s0275531923000909
    DOI: 10.1016/j.ribaf.2023.101964
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    References listed on IDEAS

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    Cited by:

    1. Ajithakumari Vijayappan Nair Biju & Ann Susan Thomas, 2023. "Uncertainties and ambivalence in the crypto market: an urgent need for a regional crypto regulation," SN Business & Economics, Springer, vol. 3(8), pages 1-21, August.
    2. Stroukal, Dominik & Peterka, Pavel, 2025. "Tokenization as a pathway to anonymity in central bank digital currencies," Research in International Business and Finance, Elsevier, vol. 75(C).
    3. Georgiana-Iulia Lazea & Maria-Roxana Balea-Stanciu & Ovidiu-Constantin Bunget & Anca-Diana Sumănaru & Ana-Maria Georgiana Coraș, 2025. "Cryptocurrency Taxation: A Bibliometric Analysis and Emerging Trends," IJFS, MDPI, vol. 13(1), pages 1-36, March.
    4. Muhammad Farrukh Shahzad & Shuo Xu & Weng Marc Lim & Muhammad Faisal Hasnain & Shahneela Nusrat, 2024. "Cryptocurrency awareness, acceptance, and adoption: the role of trust as a cornerstone," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    5. Bibi, Samuele & Canelli, Rosa, 2023. "The interpretation of CBDC within an endogenous money framework," Research in International Business and Finance, Elsevier, vol. 65(C).
    6. Palazzi, Rafael Baptista & Schich, Sebastian & de Genaro, Alan, 2025. "Stablecoins as anchors? Unraveling information flow dynamics between pegged and unpegged crypto-assets and fiat currencies," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 99(C).

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    Keywords

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    JEL classification:

    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Systems; Standards; Regimes; Government and the Monetary System
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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