CRYPTOCURRENCIES’ PUZZLE
DOI:
https://doi.org/10.24193/subbnegotia.2021.2.06Keywords:
cryptocurrencies, medium of exchange, assets, regulations.Abstract
The present paper tries to bring a certain degree of clarity to the cryptocurrencies puzzle by discussing the existing definitions and some classifications identified by academic studies. Further, it investigate, based on various academic studies, the uses of cryptocurrencies and their potential role as alternative money. The regulations regarding the cryptocurrencies are also considered since the spreading of the cryptocurrency phenomenon and the risks associated with the use of cryptocurrencies in various capacities raise problems related to (small) investor protection and anti-money laundering.
JEL Classification: E49; E59
References
Aguilar, D., 2020, Myths and realities of Venezuela’s crypto regulations, Caracas Chronicles, Nov. 5, available at: https://www.caracaschronicles.com/2020/11/05/myths-and-realities-of-venezuelas-crypto-regulations/
Almunia, M., Benetrix, A. S., Eichengreen, B., O’Rourke, K. H., Rua, G., 2009, From Great Depression to Great Credit Crisis: Similarities, differences and lessons. NBER Working Papers 15524, National Bureau of Economic Research, DOI 10.3386/w15524, available at: https://www.nber.org/papers/w15524
Ammous, S., 2018, Can cryptocurrencies fulfill the functions of money?, The Quarterly Review of Economics and Finance, vol. 70, 38-51
Athey, S., Parashkevov, I., Sarukkai, V., Xia, J., 2016, Bitcoin pricing, adoption, and usage: Theory and evidence, Working Paper no. 3469, Stanford Graduate School of Business, available at: https://www.gsb.stanford.edu/faculty-research/working-papers/bitcoin-pricing-adoption-usage-theory-evidence
Auer, R., 2019, Beyond the doomsday economics of “proof-of-work” in cryptocurrencies, BIS Working Papers, No. 765, available at: https://www.bis.org/publ/work765.pdf
Auer, R., Claessens, S., 2020, Cryptocurrency market reactions to regulatory news, Globalization Institute Working Paper 381, Federal Reserve Bank of Dallas, DOI: 10.24149/gwp381
BIS (Bank of International Settlements), 2018, BIS Annual Economic Report – V. Cryptocurrencies: looking beyond the hype, available at: https://www.bis.org/publ/arpdf/ar2018e5.htm
Brito, J., Castillo, A., 2013, Bitcoin: a primer for policymakers, Mercatus Center, George Mason University
Brito, J., Shadab, H., Castillo, A., 2014, Bitcoin financial regulation: securities, derivatives, prediction markets, and gambling, The Columbia Science & Technology Law Review, 16 (1), 144-221, available at: https://journals.library.columbia.edu/index.php/stlr/article/view/3992/1755
Borri, N., Shakhnov, K., 2020, Regulation spillover across cryptocurrency markets, Finance Research Leters, 36, 101333, DOI: 10.1016/j.frl.2019.101333
Boshkov, T., 2019, Blockchain and digital currency in the world of finance, in Blockchain and cryptocurrencies, eds. Salman, A., Razzaq, G.A., IntechOpen, London, 23-40, DOI: 10.5772/intechopen.79456
Bouri, E., Gupta, R., Vo, X.V., 2020, Jumps in geopolitical risk and the cryptocurrency market: The singularity of bitcoin, Defence and Peace Economics, published online 21 Nov. 2020, DOI: 10.1080/10242694.2020.1848285
Bouveret, A., Haksar, V., 2018, What are cryptocurrencies?, Finance & Development, 55(2), 26-29, DOI: 10.5089/9781484357415.022
Chiu, J., Koeppl, T.V., 2019, The economics of cryptocurrencies: Bitcoin and beyond, Bank of Canada Staff Working Paper, No. 2019-40, Bank of Canada, Ottawa, available at: https://www.econstor.eu/bitstream/10419/210780/1/1678115037.pdf
Cobert, S., Lucey, B., Urquhart, A., Yarovaya, L., 2019, Cryptocurrencies as a financial asset: a systematic analysis, International Review of Financial Analysis, 62, 182-199, DOI: 10.1016/j.irfa.2018.09.003
De Filippi, P., 2014, Bitcoin: a regulatory nightmare to libertarian dream, Internet Policy Review, 3(2), pp.43, DOI: 10.14763/2014.2.286, available at: https://policyreview.info/articles/analysis/bitcoin-regulatory-nightmare-libertarian-dream
Dimitrova, V., Fernandez-Martinez, M., Sanchez-Granero, M.A., Trinidad Segovia, J.E., 2019, Some comments on Bitcoin market (in)efficiency, PloS ONE, 14(7): e0219243, https://doi.org/10.1371/journal.pone.0219243
Dumchikov, M., Kononenko, N., Batsenko, L., Halenin, R., Hlushchenko, N., 2020, Issues of regulating cryptocurrency and control over its turnover: international experience, Amazonia Investiga, 9(31), 10-20, DOI: 10.34069/AI/2020.31.07.1
EBA, 2019, Report with advice for the European Commission on crypto-assets, European Banking Authority, available at: https://www.eba.europa.eu/sites/default/documents/files/documents/10180/2545547/67493daa-85a8-4429-aa91-e9a5ed880684/EBA%20Report%20on%20crypto%20assets.pdf
Fabris, N., 2019, Cashless society – The future of money or a utopia?, Journal of Central Banking Theory and Practice, 8(1), 53-66, DOI: 10.2478/jcbtp-2019-0003
Fanusie, Y.J., Robinson, T., 2018, Bitcoin Laundering: An Analysis of Illicit Flows into Digital Currency Services, Center on Sanctions & Illicit Finance, Foundation for Defense of Democraties, available at: https://info.elliptic.co/whitepaper-fdd-bitcoin-laundering
FATF, 2014, Virtual currencies – Key definitions and potential AML/CFT risks, FATF (The Financial Action Task Force), Paris, available at: https://www.fatf-gafi.org/media/fatf/documents/reports/Virtual-currency-key-definitions-and-potential-aml-cft-risks.pdf
Feinstein, B.D., Werbach, K., 2021, The impact of cryptocurrency regulation on trading markets, Journal of Financial Regulation, 7(1), 48-99, DOI: 10.1093/jfr/fjab003
Fletcher, E., Larkin, C.J., Cobert, S., 2020, Cryptocurrency regulation: countering money laundering and terrorist financing, available at SSRN. DOI: 10.2139/ssrn.3704279
Foley, S., Karlsen, J.R., Putnins, T.J., 2019, Sex, drugs and bitcoin: How much illegal activity is financed through cryptocurrencies?, The Review of Financial Studies, 32(5), 1798-1853. DOI: 10.1093/rfs/hhz015
Frankenfield, J., 2021, Petro (PTR), https://www.investopedia.com/terms/p/petro-cryptocurrency.asp
Glaser, F., Zimmermann, K., Haferkorn, M., Weber, M.C., Siering, M., 2014, Bitcoin – asset or currency? Revealing users’ hidden intentions, ECIS 2014 (Tel Aviv), available at: https://ssrn.com/abstract=2425247
Granot, E., 2019, On the origin of the value of cryptocurrencies, in Blockchain and cryptocurrencies, eds. Salman, A., Razzaq, G.A., IntechOpen, London, 75-94. DOI: 10.5772/intechopen.79451
Gruber, S.M., 2013, Trust, identity, and disclosure: Are bitcoin exchanges the next virtual havens for money laundering and tax evasion? Quinnipiac Law Review, 32(1).
Guo, X., Donev, P., 2020, Bibliometrics and network analysis of cryptocurrency research, Journal of Systems Science and Complexity, 33, 1933-1958, DOI: 10.1007/s11424-020-9094-z
Hileman, G., Rauchs, M., 2017, Global cryptocurrency benchmarking study, Cambridge Centre for Alternative Finance, University of Cambridge, Judge School of Business, available at: https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/global-cryptocurrency/#.YNGGROgzaUk
Holub, M., Johnson, J., 2018, Bitcoin research across disciplines, The Information Society, 34(2), 144-126, DOI: 10.1080/01972243.2017.1414094
Houben, R., Snyers, A., 2020, Cryptocurrencies and blockchain: legal context and implications for financial crime, money laundering and tax evasion, Directorate-General for Internal Policies of the Union, European Parliament, DOI: 10.2861/263175, available at: https://www.europarl.europa.eu/cmsdata/150761/TAX3%20Study%20on%20cryptocurrencies%20and%20blockchain.pdf
Kharif, O., 2020, Bitcoin Whales’ Ownership Concentration Is Rising During Rally, Bloomberg (Nov. 18, 2020), available at: https://www.bloomberg.com/news/articles/2020-11-18/bitcoinwhales-ownership-concentration-is-rising-during-rally
Klein, M., Gross, J., Sander, P., 2020, The digital euro and the role of DLT for central bank digital currencies, FSBC Working Paper, Frankfurt School Blockchain Center, available at: http://explore-ip.com/2020_The-Digital-Euro-and-the-Role-of-DLT-for-Central-Bank-Digital-Currencies.pdf
Lahajnar, S., Rozanec, A., 2020, The correlation strength of the most important cryptocurrencies in the bull and bear market, International Management and Financial Innovation, 17(3), 67-81, DOI: 10.21511/imfi.17(3).2020.06
Lastra, R.M., Allen, J.G., 2018, Virtual currencies in the Eurosystem. Challenges ahead: in-depth analysis. Monetary dialogue July 2018, Directorate-General for Internal Policies of the Union, European Parliament, available at: https://www.europarl.europa.eu/cmsdata/150541/DIW_FINAL%20publication.pdf
Lee, D.K.C., Teo, E.G.S., 2020, The new money: The utility of cryptocurrencies and the need for a monetary policy, available at SSRN, DOI: 10.2139/ssrn.3608752
Liu, J., 2016, Bitcoin Literature: A Co-word Analysis. In Proceedings of the 6th Economic and Finance Conference 4206769, International Institute of Social and Economic Science, 262–272, DOI: 10.20472/EFC.2016.006.013
Merediz-Sola, I., Bariviera, A.F., 2019, A bibliometric analysis of bitcoin scientific production, Research in International Business and Finance, 50, 294-305, DOI: 10.1016/j.ribaf.2019.06.008
Miciula, I., 2019, The conditions of the cryptocurrency market and exchanges in Poland, in Blockchain and cryptocurrencies, eds. Salman, A., Razzaq, G.A., IntechOpen, London, 95-113, DOI: 10.5772/intechopen.79405
Miciula, I., Kazojc, K., 2019, The global development of cryptocurrencies, Research Papers of Wroclaw University of Economics, 63(2), 184-196, DOI: 10.15611/pn.2019.2.16
Morton, D.T., 2020, The future of cryptocurrency: an unregulated instrument in an increasingly regulated global economy, Loyola University Chicago, International Law Review, 16(1), 129-143, available at: https://lawecommons.luc.edu/lucilr/vol16/iss1/8
Naismith, R., 2018, Introduction-chapter 1, in Money and coinage in the Middle Ages, Naismith, R. (ed), Brill, Boston, USA, 1-18, ISBN 978-90-04-38309-8 (e-book)
Redish, A., Weber, W.E., 2011, A model of commodity money with minting and melting, Staff Report 460, Federal Reserve Bank of Minneapolis. Research Department, DOI: 10.21034/sr.460
Scott, B., 2016, How can cryptocurrency and blockchain technology play a role in building social and solidarity finance?, UNRISD Working Paper WP 2016-1, available at: https://www.unrisd.org/80256B3C005BCCF9/(httpPublications)/196AEF663B617144C1257F550057887C?OpenDocument
Shanaev, S., Sharma, S., Ghimire, B., Shuraeva, A., 2020, Taming the blockchain beast? Regulatory implications for cryptocurrency market, Research in International Business and Finance, 51, 101080, DOI: 10.1016/j.ribaf.2019.101080
Sobiecki, G., 2015, Regulating cryptocurrencies in Poland and in the world as exemplified by bitcoin – the legal status and economic assessment, Problemy Zarzadzania, vol.13, no. 3(54), t.1, 144-163, DOI: 10.7172/1644-9584.54.10
Stokes, R., 2012, Virtual money laundering: the case of bitcoin and the Linden dollar. Information and Communications Technology Law, 21(3), 221-236, DOI: 10.1080/13600834.2012.744225
Stoll, C., Klaassen, L., Gallersdoerfer, U., 2019, The carbon footprint of bitcoin, Joule, 3(7), 1647-1661, DOI: 10.1016/j.joule.2019.05.012
Tasca, P., Hayes, A., Liu, S., 2018, The evolution of the bitcoin economy: Extracting and analyzing the network of payment relationships, Journal of Risk Finance, 19(2), 94-126. DOI: 10.1108/JRF-03-2017-0059
Van Alstyne, M., 2014, Why bitcoin has value, Communications of the ACM, 57(5), 30–32, available at: https://cacm.acm.org/magazines/2014/5/174354-why-bitcoin-has-value/fulltext
Vaz, J., Brown, K., 2020, Money without institutions: how can cryptocurrencies be trusted?, paper presented at European Financial Management Association – 2020 Annual Meeting, available at: https://www.efmaefm.org/0EFMAMEETINGS/EFMA%20ANNUAL%20MEETINGS/2020-Dublin/papers/EFMA%202020_stage-1301_question-Full%20Paper_id-207.pdf
Volckart, O., 2018, Technologies of money in the Middle Ages: The ‘Principles of Minting’, Economic History Working Papers no.275/2018, London School of Economics and Political Science, available at: http://eprints.lse.ac.uk/87152/1/WP275.pdf
Van Wegberg, R., Oerlemans, J-J., Van Deventer, O., 2018, Bitcoin money laundering: mixed results?: An explorative study on money laundering of cybercrime proceeds using bitcoin, Journal of Financial Crime, 25(2), 419-435, DOI: 10.1108/JFC-11-2016-0067
Zhang, L., 2018, China: Government indicates all virtual currency platforms have withdrawn from market, The Law Library of Congress, available at: https://www.loc.gov/law/foreign-news/article/china-government-indicates-all-virtual-currency-platforms-have-withdrawn-from-market/
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Studia Universitatis Babeș-Bolyai Negotia
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
