On the value of virtual currencies / by Wilko Bolt and Maarten R.C. van Oordt.: FB3-5/2016-42E-PDF
"This paper develops an economic framework to analyze the exchange rate of virtual currency. Three components are important: first, the current use of virtual currency to make payments; second, the decision of forward-looking investors to buy virtual currency(thereby effectively regulating its supply); and third, the elements that jointly drive future consumer adoption and merchant acceptance of virtual currency. The model predicts that, as virtual currency becomes more established, the exchange rate will become less sensitive to the impact of shocks to speculators’ beliefs. This undermines the notion that excessive exchange rate volatility will prohibit widespread use of virtual currency."-Abstract.
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publications.gc.ca/pub?id=9.823449&sl=0
| Department/Agency | Bank of Canada. |
|---|---|
| Title | On the value of virtual currencies / by Wilko Bolt and Maarten R.C. van Oordt. |
| Series title | Staff Working Paper, 1701-9397 ; 2016-42 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "August 2016." Includes bibliographical references. (Résumé en français). |
| Publishing information | [Ottawa] : Bank of Canada, c2016. |
| Author / Contributor | Bolt, Wilko. Van Oordt, Maarten R. C. |
| Description | ii, 35 p. : graphs. |
| Catalogue number |
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| Subject terms | Currency |
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