Political Economy Perspectives on Crypto- and Digital Currencies
Paper Session
Sunday, Jan. 5, 2025 8:00 AM - 10:00 AM (PST)
- Chair: Giulia Zacchia, Sapienza University of Rome
Exploring Bitcoin Wallet Distribution
Abstract
In the context of academic literature, Bitcoin, as the first decentralized digital currency, has beensubject to extensive examination, primarily focusing on its fluctuating value dynamics and potential
interconnections with conventional financial instruments. However, this study marks a departure
from the prevailing discourse, directing its inquiry towards a neglected aspect: the intricate
distribution patterns of Bitcoin among the numerous wallets recorded on its immutable Blockchain
ledger.
The Blockchain, serving as Bitcoin's foundational infrastructure, presents itself as a transparent and
accessible ledger of transactional data, facilitating comprehensive insights into the complex fabric of
Bitcoin transactions. With the cryptocurrency's origin dating back over 15 years, our study embarks
on a thorough exploration of Bitcoin distribution among wallets during pivotal historical periods,
both within the Bitcoin narrative and in the broader context of global economic shifts.
We explore the characteristics of Bitcoin transactions. Our analysis goes beyond transaction volumes,
scrutinizing the temporal dynamics and correlations with Bitcoin's price trends, market sentiment,
and demand dynamics. We investigate the fundamental drivers of digital currency demand, including
speculative activities, investment strategies, and the link between cryptocurrency adoption and illicit
financial practices. Finally, we categorize Bitcoin users based on their transaction patterns and values
during different periods. Through disentangling these complex aspects, our research aims to enrich
the academic discourse surrounding the socio-economic impact of Bitcoin and its role within the
global financial framework.
Cryptocurrencies and Gender Gaps in Financial Inclusion
Abstract
Blockchain and cryptocurrencies are a two-faced Janus: on one hand they are considered a tool to foster financial inclusion (Rella, 2019), having the potential to open up the financial system, improving the degree of inclusion for the most marginalised subjects from the financial infrastructure (i.e., the use of blockchain to facilitate more efficient, secure and transparent cash aid in conflict zones by the U.N. World Food Programme); on the other hand, their complexity has raised concerns due to their accessibility and their potential to perpetuate inequalities in financial inclusion when they do not automatically benefit all equally (United Nations, 2018; Di Vaio et al., 2022). In fact, the adoption of blockchain and cryptocurrencies would generate more inequalities due to the persistent gender inequalities both in access to technologies, digital education (for the EU see EU Commission’s Report on Closing the Gender Digital Divide; 2019/2168 - INI) and in financial literacy (Bottazzi and Lusardi, 2021). However, little attention has been paid to the link between blockchain and cryptocurrencies and gender. Using OECD-INFE 2023 microdata, our analysis aims to provide new insights on the gender gaps in the digital financial literacy and the use of cryptocurrencies and crypto assets to underline the potential risks of gender blindness in the analyses of cutting-edge technological innovation in finance.Exploring the Trajectories towards CBDCs in the U.S. and Europe: A Tale of Two Strategies
Abstract
This paper examines the divergent strategies adopted by Europe and the US regardingthe issuance of a Central Bank Digital Currency (CBDC). While the European Union
has concluded the consultation phase and initiated the design phase for a Digital Euro,
the US has taken a more cautious stance, delaying a decision on the creation of a Digital
Dollar. We argue that these different dispositions stem from the distinct challenges and
opportunities confronting each of the North Atlantic economies. European
interventions are propelled by the necessity to modernize the monetary system in
response to declining cash usage while retaining a leading position in global digital
finance. Conversely, across the ocean, the SEC's authorization of Bitcoin ETFs, signals
a growing institutional acceptance of private cryptocurrencies. This aligns with the
Federal Reserve's stance, which appears inclined to uphold the status quo, leveraging
developments in private stablecoins and cryptocurrency innovation without an
immediate need for issuing a Digital Dollar. This article emphasizes the importance of
investigating the institutional specificities of each economy to understand CBDC
strategies. In particular, it suggests that comprehending their unique State-financial
market configurations is crucial to grasp the motivations behind CBDC adoption.
JEL Classifications
- G2 - Financial Institutions and Services
- O3 - Innovation; Research and Development; Technological Change; Intellectual Property Rights