23 Pages Posted: 20 Aug 2019 Last revised: 17 Jun 2020

There are 2 versions of this paper

Date Written: August 16, 2019

Abstract

This paper provides a systematic evaluation of the different types of digital currencies. We express skepticism regarding centralized digital currencies and therefore focus our economic analysis on private digital currencies. Specifically, we highlight the potential for private digital currencies to improve welfare within an emerging market with a selfish government. In that setting, we demonstrate that a private digital currency not only improves citizen welfare but also encourages local investment and enhances government welfare.