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Hilton Atlanta, 204
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International Trade and Finance Association
This paper assesses the global coordination proposed by the FATF.
In this article I compare complementary and virtual currencies, in order to highlight not only the many substantial differences between them, but also the few possible similarities. In doing so I also look at the past literature in order to identify their theoretical roots. Complementary currencies are based on the idea that the functions of unit of account and of medium of exchange can be separated. In particular, they refer to the old notion of imaginary currency to be used as a unit of account, besides the effective currency in circulation to be used for transactions. Virtual currencies, instead, can be interpreted as satisfying Hayek’s idea of denationalizing and decentralizing money creation, preventing any monopoly and realizing competition also in the printing of money, something made possible by his rejection of Gresham’s law.
The Digital Agenda of Virtual Currencies in the Bitcoin Age: Regulation, Anonymity and Cybercrime
Paper Session
Saturday, Jan. 5, 2019 12:30 PM - 2:15 PM
- Chair: Joseph Pelzman, George Washington University
Global Anti-money Laundering Governance of Digital Currencies
Abstract
What implications do cryptocurrencies pose for global anti-money laundering efforts? The implications of cryptocurrencies for global anti-money laundering stem from both the threats of their illicit uses as virtual currencies and from the opportunities presented by their underlying blockchain technologies. The Financial Action Task Force (FATF), proposes an interesting approach to balance between the existing threats and opportunities that cryptocurrencies present. However, its suggestion for a looser, decentralized governance networks is regarded as less effective than traditional centralized forms of anti-money laundering practices.This paper assesses the global coordination proposed by the FATF.
Theoretical Foundations of Complementary And Virtual Currencies
Abstract
The recent success of bitcoins, with their technological side aspects mainly associated with the development of the still rather obscure blockchain mechanism, is accompanied not only by the diffusion of many other virtual currencies (or cryptocurrencies, to underline their unclear functioning), but also by the more limited attempts, of a totally different nature, to introduce local and complementary currencies.In this article I compare complementary and virtual currencies, in order to highlight not only the many substantial differences between them, but also the few possible similarities. In doing so I also look at the past literature in order to identify their theoretical roots. Complementary currencies are based on the idea that the functions of unit of account and of medium of exchange can be separated. In particular, they refer to the old notion of imaginary currency to be used as a unit of account, besides the effective currency in circulation to be used for transactions. Virtual currencies, instead, can be interpreted as satisfying Hayek’s idea of denationalizing and decentralizing money creation, preventing any monopoly and realizing competition also in the printing of money, something made possible by his rejection of Gresham’s law.
Discussant(s)
Marta Bengoa
,
City University of New York-City College
Gina Pieters
,
University of Chicago
Joseph Pelzman
,
George Washington University
Maria E. de Boyrie
,
New Mexico State University
JEL Classifications
- E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit
- F3 - International Finance