In this paper we explain the basics of Bitcoin protocol and the state of the art of the main attacks to it. We first present an overview of digital currencies, showing what they are and the social need they aim to satisfy. We then focus on the main digital currency up to date, Bitcoin. We treat the basics of the protocol showing what are addresses and transactions and how they are used in a dis...

This survey discusses theoretical models of speculative attack and currency crises, and reviews the empirical evidence. The paper outlines the correspondence of the models to different cases of crisis (e.g. Latin American crises, the ERM breakdown, and the recent Asian crisis), and points to gaps in the theoretical literature for explaining the Asian crisis. The large economic costs resulting f...

This paper revisits the uncovered interest parity relation. It supplements existing work in two ways: It focuses on long instead of short-term interest rates, and, related to that, employs exchange rate expectations derived from purchasing power parity (PPP) instead of actual outcomes. Among the major ̄oating currencies over the period 1975± 1997, the paper cannot support the notion of further ...

Interest in digital currencies, especially Bitcoin, has exploded over the past year. The cryptocurrency Bitcoin was created in 2009 by an anonymous entity operating under the pseudonym Satoshi Nakamoto. Using cryptographic primitives to create a digital currency is not particularly new – David Chaum proposed electronic cash nearly thirty years ago. What is different about Bitcoin is its success...

A growing number of central banks are considering the issuance bank digital currencies (CBDCs). CBDCs for general public (“retail CBDCs”) would constitute a liability and form cash. To public, they be an alternative to issued cash private money, such as traditional deposits. The evolution payments plays pivotal role in developing CBDCs. Given declining some jurisdictions, new money may contribu...

We present an automated market-making (AMM) cross-settlement mechanism for digital assets on interoperable blockchains, focusing central bank currencies (CBDCs) and stable coins. develop innovative approach generating fair exchange rates on-chain consistent with traditional off-chain markets. illustrate the efficacy of our realized FX G-10 currencies.

Cryptocurrencies and decentralized finance have grown considerably since the publication of white paper on bitcoin in 2009. This article presents an overview cryptocurrencies, blockchain technology, their applications, explaining spirit enterprise how it compares with traditional operations.