Financial Stability In The Digital Age – English
Innovation shapes the evolution of the financial system and plays a crucial role in economic development. Yet innovative technologies may also make more questionable contributions, like during the 2008 financial crisis.
The Bitcoin Question: Currency versus Trust-less Transfer Technologyâ,OECD Working Papers on Finance,Insurance and Private Pensions,No. 37,OECD Publishing.
The financial crisis has led to a widespread loss of trust in financial intermediaries of all kinds, perhaps helping to open the way towards the general acceptance of alternative technologies. This paper briefly summarises the cryptocurrency phenomenon, separating the âcurrencyâ issues from the potential technology benefits. With respect to crypto currencies, the paper argues that these canât undermine the ability of central banks to conduct monetary policy.