Download This PaperThe Economics of Digital Currencies
11 Pages Posted: 23 Sep 2014
Date Written: September 16, 2014
Abstract
Although digital currencies could, in theory, serve as money for anybody with an internet-enabled device, at present they act as money only to a limited extent and only for relatively few people. The economics of the schemes as currently designed, both in terms of individuals’ incentives and at a macroeconomic level, pose significant challenges to their widespread adoption. Digital currencies do not currently pose a material risk to monetary or financial stability in the United Kingdom. The Bank continues to monitor developments in this area.
Suggested Citation: Suggested Citation
Ali, Robleh and Barrdear, John and Clews, Roger and Southgate, James, The Economics of Digital Currencies (September 16, 2014). Bank of England Quarterly Bulletin 2014 Q3, Available at SSRN: https://ssrn.com/abstract=2499418
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