From cash to private and public digital currencies: The risk of financial instability and “modern monetary Middle ages”
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Ansgar Belke [1] ; Edoardo Beretta [2]
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[1] University of Duisburg-Essen
University of Duisburg-Essen
Kreisfreie Stadt Essen, Alemania
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[2] Universita della Svizzera italiana
Universita della Svizzera italiana
Lugano, Suiza
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- Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 9, Nº. Extra 3, 2020 (Ejemplar dedicado a: Selected papers from 7th International PhD Meeting in Economics 2019), págs. 189-196
- Idioma: inglés
- Enlaces
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Resumen
The article analyzes the unstable equilibrium between innovating national monetary systems by means of (private/public) digital currencies while maintaining financial stability as secured by “tangible” store of values like notes/coins. Which are those elements of innovation strengthening today’s payments system? And, at the same time, which modern trends might destabilize the above-mentioned equilibrium? The paper will identify some fundamental monetary principles to be respected, no matter what the innovation level in post-modern economies might soon look like. Cryptocurrencies will be also compared to central bank digital currencies (CBDC), which might soon complement (or even replace) notes and coins. But, is cash truly a “barbarous relic”? And, which impact might have its legal limitation (as it is occurring in several European countries)?
