IDEAS home Printed from https://ideas.repec.org/a/mes/ijpoec/v48y2019i2p174-194.html
   My bibliography  Save this article

Cryptocurrencies, Monetary Policy, and New Forms of Monetary Sovereignty

Author

Listed:
  • Marco Fama
  • Andrea Fumagalli
  • Stefano Lucarelli

Abstract

The article aims to bring to light the limits and contradictions of cryptocurrencies, as well as to investigate possible alternative uses of them. Particularly focusing on Bitcoin, understood as a benchmark for the entire sector, the authors seek to answer the following questions: Should Bitcoin be considered a currency, an investment vehicle, or a speculative asset? On which factors does Bitcoin volatility depend? Do Central Banks effectively have no power to influence/stabilize Bitcoin volatility? Following the empirical strategy proposed by Baek and Elbeck, the article shows that Bitcoin returns merely depend on financial conventions and that the cryptocurrency is acting as a highly speculative asset. Sociotechnical innovations introduced by Bitcoin, the authors argue, have concretely opened the possibility of deeply rethinking money. However, several factors are currently negatively affecting the possibility of the cryptocurrency to function as an effective means of payment. Whether this experience can pave the way for the birth of new and more democratic monetary instruments, as the article discusses, is an issue that calls into question a whole combination of political, technical and social elements.

Suggested Citation

  • Marco Fama & Andrea Fumagalli & Stefano Lucarelli, 2019. "Cryptocurrencies, Monetary Policy, and New Forms of Monetary Sovereignty," International Journal of Political Economy, Taylor & Francis Journals, vol. 48(2), pages 174-194, April.
  • Handle: RePEc:mes:ijpoec:v:48:y:2019:i:2:p:174-194
    DOI: 10.1080/08911916.2019.1624318
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/08911916.2019.1624318
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/08911916.2019.1624318?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sumei Luo & Guangyou Zhou & Jinpeng Zhou, 2021. "The Impact of Electronic Money on Monetary Policy: Based on DSGE Model Simulations," Mathematics, MDPI, vol. 9(20), pages 1-26, October.
    2. Dean Fantazzini & Raffaella Calabrese, 2021. "Crypto Exchanges and Credit Risk: Modeling and Forecasting the Probability of Closure," JRFM, MDPI, vol. 14(11), pages 1-23, October.
    3. Ana Cristina O. Siqueira & Benson Honig & Sandra Mariano & Joysi Moraes, 2020. "A Commons Strategy for Promoting Entrepreneurship and Social Capital: Implications for Community Currencies, Cryptocurrencies, and Value Exchange," Journal of Business Ethics, Springer, vol. 166(4), pages 711-726, November.
    4. Aniruddha Dutta & Saket Kumar & Meheli Basu, 2020. "A Gated Recurrent Unit Approach to Bitcoin Price Prediction," JRFM, MDPI, vol. 13(2), pages 1-16, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:ijpoec:v:48:y:2019:i:2:p:174-194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MIJP20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.