IDEAS home Printed from https://ideas.repec.org/a/spr/eaiere/v17y2020i2d10.1007_s40844-020-00185-y.html
   My bibliography  Save this article

Special issue “New Possibility of Cryptocurrencies and Digital-Community Currencies”

Author

Listed:
  • Makoto Nishibe

    (Senshu University)

Abstract

This special issue features the theme “New Possibilities of Cryptocurrencies and Digital-Community Currencies” by collecting five articles presented at RAMICS2019 held in Hida-Takayama, Japan. Community currencies, which can be understood as integrative communication media combining the economic domain and the social-cultural domain, have been actively practiced since the 1980s in Europe and North America and the late 1990s in Japan. Due to the progress of Blockchain/DLT, and QR code payment technologies and the diffusion of smartphones, cryptocurrencies and digital-community currencies (DCCs), in which the vision of CCs and the technology of cryptocurrencies are fused, have rapidly increased their presence and coexisted with national currencies as legal tender. The striking example of this trend is Facebook’s new digital coin called “Libra.” It can be understood not just as a blockchain-based stable coin for global payment system backed by multinational currencies, but also as a vast glocal digital-community currency to empower its billions of members larger than any national currency. To fully understand the new possibilities of cryptocurrencies and DCCs, we must reconsider the nature of currently dominant national currencies, particularly central banknotes, in the world. Controversially, inconvertible central banknotes are IOU entered on the liability side of the balance sheet of the central bank, but are also cash on the asset side of the balance sheets of all other economic agents. Tracing back the evolution of money, we conceive them as ‘informational money’ that integrates the properties of both material money and credit money. Their asset value is not endured as compulsory power forced by the laws of the state, but as self-generating purchasing power created by non-material self-fulfilling ideas such as custom and expectations. For CCs and Libra to persist, it is necessary to tempt users to follow the rules of self-fulfilling enjoyment or share to the future projection different from those of custom and expectations. The defect of Modern Monetary Theory (MMT) lies in overestimation of strength of self-generating value of central banknotes and neglecting the present trend of diffusing private money.

Suggested Citation

  • Makoto Nishibe, 2020. "Special issue “New Possibility of Cryptocurrencies and Digital-Community Currencies”," Evolutionary and Institutional Economics Review, Springer, vol. 17(2), pages 313-325, July.
    • Handle: RePEc:spr:eaiere:v:17:y:2020:i:2:d:10.1007_s40844-020-00185-y
    DOI: 10.1007/s40844-020-00185-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40844-020-00185-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40844-020-00185-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Federico José Camargo, 2020. "The effectiveness of distributed ledger technology to replicate the entropic behavior of nature," Evolutionary and Institutional Economics Review, Springer, vol. 17(2), pages 361-378, July.
    2. Makoto Nishibe, 2016. "The Enigma of Money," Springer Books, Springer, number 978-981-10-1819-0, June.
    3. L. R. Wray, 1990. "Money and Credit in Capitalist Economies," Books, Edward Elgar Publishing, number 474.
    4. Yuji Aruka, 2020. "The evolution of the exchange process: from the decentralized to the distributed digital exchange," Evolutionary and Institutional Economics Review, Springer, vol. 17(2), pages 379-398, July.
    5. Takayoshi Kusago & Makoto Nishibe, 2018. "Community dock: a new policy approach for altering institutions," Evolutionary and Institutional Economics Review, Springer, vol. 15(2), pages 431-459, December.
    6. L. Randall Wray, 1998. "Understanding Modern Money," Books, Edward Elgar Publishing, number 1668.
    7. Maen Alaraj & Makoto Nishibe, 2020. "Stimulate currency circulation in the currency community by creating a customized community," Evolutionary and Institutional Economics Review, Springer, vol. 17(2), pages 399-412, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. L. Randall Wray, 2011. "Waiting for the Next Crash: The Minskyan Lessons We Failed to Learn," Economics Public Policy Brief Archive ppb_120, Levy Economics Institute.
    2. Phil Armstrong, 2020. "Can Heterodox Economics Make a Difference?," Books, Edward Elgar Publishing, number 19964.
    3. Thomas Cate (ed.), 2012. "Keynes’s General Theory," Books, Edward Elgar Publishing, number 3855.
    4. Sébastien Charles, 2008. "Teaching Minsky's financial instability hypothesis: a manageable suggestion," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 31(1), pages 125-138, September.
    5. L. Randall Wray, 2012. "Money in finance," Chapters, in: Jan Toporowski & Jo Michell (ed.), Handbook of Critical Issues in Finance, chapter 33, pages i-ii, Edward Elgar Publishing.
    6. Stephanie Bell & L. Randall Wray, "undated". "The War on Poverty After 40 Years: A Minskyan Assessment," Economics Public Policy Brief Archive ppb_78, Levy Economics Institute.
    7. Jussi Ahokas, 2012. "Geographies of Monetary Economy and the European economic crisis," ERSA conference papers ersa12p437, European Regional Science Association.
    8. Boermans, Martijn Adriaan & Moore, Basil J, 2008. "Locked-in and Sticky Textbooks: Mainstream Teaching of the Money Supply Process," MPRA Paper 14845, University Library of Munich, Germany, revised Apr 2009.
    9. L. Randall Wray, 2020. "Sovereign Currency and Non‐Sovereign Budgets: The Modern Money Theory Approach," Public Budgeting & Finance, Wiley Blackwell, vol. 40(3), pages 26-48, September.
    10. Nikolay Nenovsky & Yorgos Rizopoulos, 2003. "Extreme Monetary Regime Change: Evidence from Currency Board Introduction in Bulgaria," Journal of Economic Issues, Taylor & Francis Journals, vol. 37(4), pages 909-941, December.
    11. Marshall Auerback & L. Randall Wray, 2010. "Toward True Health Care Reform: More Care, Less Insurance," Economics Public Policy Brief Archive ppb_110, Levy Economics Institute.
    12. Yeva Nersisyan & L. Randall Wray, 2021. "Can Biden Build Back Better? Yes, If He Abandons Fiscal "Pay Fors"," Economics Public Policy Brief Archive ppb_155, Levy Economics Institute.
    13. Scott Fullwiler & L. Randall Wray, 2011. "It's Time to Rein In the Fed," Economics One-Pager Archive op_8, Levy Economics Institute.
    14. Marc Lavoie, 2022. "Post-Keynesian Economics," Books, Edward Elgar Publishing, number 19900.
    15. Dimitri B. Papadimitriou & L. Randall Wray, 2021. "Still Flying Blind after All These Years: The Federal Reserve's Continuing Experiments with Unobservables," Economics Public Policy Brief Archive ppb_156, Levy Economics Institute.
    16. Eric Tymoigne & L. Randall Wray, 2009. "It Isn't Working: Time for More Radical Policies," Economics Public Policy Brief Archive ppb_105, Levy Economics Institute.
    17. Dimitri B. Papadimitriou & L. Randall Wray & Yeva Nersisyan, 2010. "Endgame for the Euro? Without Major Restructuring, the Eurozone is Doomed," Economics Public Policy Brief Archive ppb_113, Levy Economics Institute.
    18. L. Randall Wray, 2013. "Is there room for bulls, bears and States in the circuit?," Chapters, in: Louis-Philippe Rochon & Mario Seccareccia (ed.), Monetary Economies of Production, chapter 6, pages 54-70, Edward Elgar Publishing.
    19. Yeva Nersisyan & L. Randall Wray, 2010. "The Trouble with Pensions: Toward an Alternative Public Policy to Support Retirement," Economics Public Policy Brief Archive ppb_109, Levy Economics Institute.
    20. L. Randall Wray, 2012. "Keynes after 75 Years: Rethinking Money as a Public Monopoly," Chapters, in: Thomas Cate (ed.), Keynes’s General Theory, chapter 15, Edward Elgar Publishing.

    More about this item

    Keywords

    Community currency; Cryptocurrency; Digital-community currency; Central banknote; Libra; MMT;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eaiere:v:17:y:2020:i:2:d:10.1007_s40844-020-00185-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.