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How much cash is in crypto?

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Listed:
  • Beat Weber

    (Oesterreichische Nationalbank)

Abstract

In 2008, an anonymous white paper introduced “bitcoin.” Its ideas triggered and inspired the emergence of thousands of crypto assets in its wake. Putting key terms used in this paper to a close reading reveals that terms like “electronic cash,” “peer-to-peer” and “inflation” are used in a different sense than is customary in economic debate. Despite claims put forth in the white paper, transferring bitcoins is neither “peer-to-peer” in the sense of a non-intermediated transfer between two individuals nor does bitcoin offer technical protection against losses in value and is therefore not “inflation free.” Last but not least, bitcoin is not a carrier of stable value that is generally accepted like cash.

Suggested Citation

  • Beat Weber, 2022. "How much cash is in crypto?," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1-Q2/22, pages 75-90.
    • Handle: RePEc:onb:oenbmp:y:2022:i:q1-q2/22:b:3
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    References listed on IDEAS

    as
    1. Bindseil, Ulrich, 2004. "Monetary Policy Implementation: Theory, past, and present," OUP Catalogue, Oxford University Press, number 9780199274543.
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    More about this item

    Keywords

    crypto assets; cash;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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