Beginning in 1959, Federal Reserve member banks were allowed to use both vault cash and deposits at Federal Reserve Banks to satisfy statutory reserve requirements. Prior to this time, member banks were restricted to satisfying required reserves solely with deposits at Federal Reserve Banks. Hence, member banks held currency in their vaults only to satisfy daily demands by depositors. Fluctuati...

Digital platforms, such as Alibaba and Amazon, operate an online marketplace to facilitate transactions. This paper studies a platform’s business model choice between accepting cash issuing tokens, well the implications for welfare, resiliency, interoperability. A platform free rides on existing payment infrastructure profits from collecting transaction fees. token earns seigniorage, albeit bear...

Currently, the use of cash payments in economy is an undesirable element since it basis for shadow development. The willingness Russian Federation Government to switch non-cash has reason. implementation many state programs depends on development, especially developing regions. Non-cash allow take control movement funds, as well assess its origin. Moreover, they contribute growth tax revenues b...

Life settlements provide the possibility for individuals to convert their life insurance policies into cash in a secondary market transaction. Hence, this additional option is welcome from the current policyholders’ point of view, but the reasons for the attractiveness to financial investors as well as the equilibrium impacts on life insurers and future policyholders are not immediate clear. Th...

We study a proprietary dataset detailing the terms of over 1,000 sales transactions to 218 firms by a mechanics importer in an Asian country. Kickbacks are commons: 85 firms demand cash kickbacks in order to make a purchase. We find government firms to be the most corrupt, requiring kickbacks 47% of the time. However, private domestic firms are not free of corruption, with 32% requiring kickbac...

Using historical firm financial and insider trading information, this paper examines whether high-level insiders manipulate earnings ahead of their own 10b5-1 equity transactions. The empirical evidence suggests that high-level executives appear to manipulate earnings through real activities such as abnormal discretionary expenditures and abnormal cash flows from operations to influence equity ...

Abstract Increasing the tax compliance of self-employed business owners—particularly trade-specific service providers such as those involved in construction and repair work—remains an ongoing challenge for authorities. From a point view, cash transactions are particularly problematic when services paid on spot, these exchanges difficult to audit. We present experimental evidence testing ten dif...

Off-Chain transactions allow for the immediate transfer of Cryptocurrency between two parties, without delays or unavoidable transaction fees. Such capabilities are critical for mainstream Cryptocurrency adaption. They allow for the “Coffee-Coin Criteria”; under which a customer orders a coffee and pays for that coffee in bitcoins. This is not possible with On-Chain transactions today. No custo...

Bitcoin, the first peer-to-peer electronic cash system, opened the door to permissionless, private, and trustless transactions. Attempts to repurpose Bitcoin’s underlying blockchain technology have run up against fundamental limitations to privacy, faithful execution, and transaction finality. We introduce Strong Federations: publicly verifiable, Byzantinerobust transaction networks that facili...

Bitcoin is a peer-to-peer (p2p) electronic cash system that uses a distributed timestamp service to record transactions in a public ledger (called the Blockchain). A critical component of Bitcoin’s success is the decentralized nature of its architecture, which does not require or even support the establishment of trusted authorities. Yet the absence of certification creates obstacles to its wid...