The economics of digital currencies - Quarterly Bulletin article

A key question surrounding digital currencies like Bitcoin is: to what extent should they be considered as money? This video answers that question by considering the roles we expect money to serve, and how much digital currencies are currently used in those ways. The video also discusses: how might the economics of the schemes – and the low transaction fees in particular – play out in the long run? And what risks might digital currencies pose to the Bank of England’s objectives for monetary and financial stability? A Quarterly Bulletin article explores these issues in more detail, as well as other topics such as the parallels between digital currencies and free banking. http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q3digitalcurrenciesbitcoin2.pdf Filmed by James Oxley

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