【Macro/Finance webinar】Digital Currency Runs

  • 研討會日期 : 2021-04-22
  • 時間 : 16:00
  • 主講人 : Professor David Skeie
  • 地點 : online
  • 演講者簡介 : Professor Skeie received his Ph.D. in Economics from Princeton University in 2004. He is currently a Professor of Finance at University of Warwick. His research interests are Financial Intermediation, Financial Crises, Interbank Markets, Fintech, Contract Theory, and Corporate Finance.
  • 演講摘要 : Digital currency created by the private sector, such as bitcoin, is designed to have a determined supply and enable payments with the premise of competing with and supplanting central bank flat money and the banking system. Central banks are developing flat public digital currency and banks are innovating in response. This paper shows that private digital currency may be preferred over flat money in countries with high inflation, but using it outside of the banking system reduces investment. Banks can re-emerge by taking deposits and lending in private digital currency to increase investment while avoiding inflationary flat money, but these banks risk having withdrawal runs into the digital currency. A globally used private digital currency acts similar to a traditional hard currency within developing countries by eliminating flat inflation but exacerbating bank fragility. A regionally used altcoin is superior to a global digital currency and other hard currencies by limiting inflation while alleviating macroeconomic shocks and bank runs.