1001 Sherbrooke Street West
Montreal, Quebec H3A 1G5
Institutional Affiliation: McGill University
NBER Working Papers and Publications
|September 2019||How Do Private Digital Currencies Affect Government Policy?|
with Max Raskin, David Yermack: w26219
This paper provides a systematic evaluation of the different types of digital currencies. We express skepticism regarding centralized digital currencies and therefore focus our economic analysis on private digital currencies. Specifically, we highlight the potential for private digital currencies to improve welfare within an emerging market with a selfish government. In that setting, we demonstrate that a private digital currency not only improves citizen welfare but also encourages local investment and enhances government welfare.