A new research paper co-authored by an economics advisor at the Federal Reserve Bank of Philadelphia explores how private forms of money, including digital currencies, interact with one another in terms of price stability.
Among the notable arguments is that the rise of the internet has resulted in an environment in which private monies like Bitcoin can competitively emerge.
According to the report, the issuing of a private currency is logically separated from banking. Both tasks were historically linked for logistical reasons: banks had a central location in the network of payments that made it easy for them to introduce currency in circulation.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now