Some Economics of Private Digital Currency
نویسندگان
چکیده
This paper reviews some recent developments in digital currency, focusing on platform-sponsored currencies such as Facebook Credits. In a model of platform management, we find that it will not likely be profitable for such currencies to expand to become fully convertible competitors to state-sponsored currencies. JEL Classification: D42, E4, L51 Bank Classification: bank notes, economic models, payment clearing and settlement systems * Rotman School of Management, University of Toronto and NBER (Gans) and Bank of Canada (Halaburda). The views here are those of the authors and no responsibility for them should be attributed to the Bank of Canada. We thank participants at the NBER Economics of Digitization Conference, Warren Weber and Glen Weyl for helpful comments on an earlier draft of this paper. Please send any comments to [email protected].
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