8 Apr
0
Bitcoin can win the competition with Fiat currency
Some days ago the researchers of the Federal Reserve Bank of Philadelphia released a new whitepaper in which they explained that bitcoin and digital currencies can win the competition with Fiat currency, or the government money.
On April 3rd, in fact, Jesus Fernandez-Villaverde of the University of Pennsylviania and Daniel Sanches of the Bank of Philadelphia published an interesting paper that answers the question: “can competition among privately issued fiat currencies such as Bitcoin or Ethereum work?”.
Bitcoin vs Fiat
In this whitepaper Villaverde and Sanches try to explain how private and digital forms of money can interact (and could win the competition) with government-issued money.
To comment about this topic, the authors talked about the rise of the Internet, thanks to it, in fact, digital currencies such as Bitcoin or Ethereum can stand out in the competition with Fiat.
This is a comment of the whitepaper’s authors:
“Our model highlights how the issuing of a private currency is logically separated from banking. Both tasks were historically linked for logistical reasons: banks had a central location in the network of payments that made it easy for them to introduce currency in circulation”.
Downloadable whitepaper
Multicurrencies Wallet
Open your free digital wallet here to store your cryptocurrencies in a safe place.
